Rick Rodriguez, the founder of local real estate investment firm Brass Real Estate Funds, has created a new investment vehicle — one designed to take advantage of opportunities in the current recession that has soured real estate markets across the country.

Known as the Brass Opportunity Fund, the venture will focus on purchasing “quality real estate assets from owners facing liquidity traps caused by the upheavals in today’s credit markets,” Rodriguez explains.

While Rodriguez declined to name his financial partners or the amount of money currently available through the new Brass Opportunity Fund, he does say that the goal is to create a fund that will own about $100 million worth of real estate properties.

To that end, Rodriguez has already set his sites on three markets: Pensacola, Fla.; Salt Lake City; and San Antonio.

High on Rodriguez’ list of desired assets for Brass Opportunity are office and multifamily assets. He says he is also open to industrial properties and raw land purchases as well.

Sign of the times
Brass Opportunity marks the latest investment fund for Rodriguez, who founded Brass Funds in 1996. Over the course of the past 13 years, Rodriguez has accumulated a portfolio through these funds that boasts more than 2 million square feet of commercial real estate — valued at some $230 million.

While San Antonio has been a hot spot for his investments, Rodriguez has also been active in other cities, such as Longmont, Colo.

Each fund targeted for real estate investments is set up as a limited partnership, with Rodriguez serving as the general partner for the partnership.

Brass’ partners in the funds include both private and institutional investors.

It is this diverse pool of investors that Rodriguez believes gives Brass Funds an advantage in the down real estate market. While the current credit squeeze has created a serious capital issue for many owners, Rodriguez already has access to an established network of investors.

Case in point is Horsham, Pa.-based Capmark Finance Inc., which has partnered with Rodriguez on deals such as the Brass Professional Center. The office park spans 80-plus acres along Loop 410 and Callaghan Road in Northwest San Antonio.

The Brass Professional Center — formerly known as Centerview Crossing — is an example of the kind of value-added properties through which Rodriguez has created a name for himself. Since purchasing the complex in 2006, Rodriguez has remodeled several of the office structures, installed a 60-foot tall color LED display sign and added new monument signs for the park.

He also sold off about 10 buildings in the park to locally based HPI Real Estate Services & Investments. Those buildings will be demolished to make way for a new retail center by HPI, to be called Centerview Crossing.

Local brokerage firm Magi Real Estate Services provides the leasing, property management, development and construction services for Brass Funds’ assets. Rodriguez is also the founder of Magi.

Capital catalyst
It’s not just real estate owners feeling the pinch in this recession. Potential investors have also been hampered by the credit crunch. Investment activity within San Antonio’s commercial real estate sectors has come to a screeching halt.

It’s not a lack of interest that is plaguing the city. In both the office and industrial sectors, there are “interested buyers waiting in the wings,” notes Kimberly S. Gatley, senior vice president and director of research for locally based NAI REOC Partners.

The trick is finding the capital to make these deals happen, she adds.

It’s a market that is ripe for “well capitalized buyers” like Brass, Rodriguez says.

“Given the problems being confronted by many of today’s developers and commercial property owners, we expect the deal flow to increase substantially,” Rodriguez says.