Real Capital Solutions launched a $350 million private fund to acquire Class A and B office properties facing financial distress in prime and secondary U.S. markets. With leverage, the vehicle will have capacity to buy approximately $850 million of assets, the Louisville-based firm said Monday.

Marcel Arsenault, founder and chief executive of Real Capital Solutions, committed $50 million of personal capital as the fund's anchor investor. The firm has invested more than $5 billion across 400 acquisitions since its founding four decades ago.

Between 2024 and 2026, Real Capital Solutions deployed $644 million of its own capital to acquire 14 office properties in 10 U.S. markets. The portfolio traded at an average of $116 per square foot, roughly 18% of replacement cost and more than half below peak values, the firm said.

The fund targets office assets whose valuations have fallen because of higher interest rates, constrained capital markets, refinancing pressures and the economic aftereffects of the pandemic. Real Capital Solutions has generated a 24% realized gross internal rate of return across 177 realized investments since 2008.

"The office market continues to reset, but we believe the long-term outlook for premier office assets is extremely strong," Arsenault said. "Companies still need high-quality workplaces to attract talent, foster innovation and drive growth, and those assets will continue to outperform over time."

Adam Abeln, chief investment officer and managing director at Real Capital Solutions, said forced selling, limited financing availability and wide bid-ask spreads have created entry points for disciplined investors. The fund is positioned for high-net-worth and family office investors seeking non-correlated alternative investments, he said.

"We believe the current market presents one of the most compelling office investment opportunities in decades," Abeln said. The firm currently owns 80 properties with more than $2.7 billion of assets under management.

Real Capital Solutions targets opportunities with value-add or opportunistic components and is willing to invest in most markets. The firm relies on deep analysis, an experienced real estate team and a four-decade investment track record, it said.