Arsenal RE Funds to Focus on MF Projects

Arsenal Real Estate Funds has been launched by a group of real estate professionals to develop multifamily projects in "densely populated, high-demand markets nationally."The Morristown, N.J.-based $350 million private equity enterprise will focus its development activities on the Northeast, California, and Florida, Arsenal said. The firm's principals include Gary Picone, John Maurer, and Joe Margolis, all former Prudential REI executives, and J. Brian O'Neill, a Philadelphia-based real estate developer, Arsenal said. "In real estate, creative reuse of land and manufacturing of housing provides the opportunity for outsized returns," Mr. Picone said. "Our fund will seek out these opportunities and drive exceptional returns to investors." Arsenal said it expects to "align its capital" with experienced local partners and seek out "high-margin transactions" including land development, new rental and for-sale housing development, residential redevelopment, and repositioning investments.