USAA Real Estate acquired opportunistic real estate manager Square Mile Capital Management, confirmed Rick Matthews, a Square Mile spokesman.
Terms of the deal are not being disclosed, but Square Mile founders Jeffrey B. Citrin and Craig H. Solomon will retain a majority interest and oversee the day-to-day operations of the firm, which invests in distressed commercial real estate.
The firm closed its last fund, the $806 million Square Mile Partners IV, in 2009, Mr. Matthews said in an e-mailed response to questions.
USAA Real Estate is a subsidiary of USAA, a financial services firm serving military families. USAA Real Estate provides co-investment asset management services for institutional investors. It is a co-sponsor of a value-added real estate fund being raised by the real estate investment firm Admiral Capital Group.
“With this new strategic relationship, we are better positioned than ever to capture our fair share of opportunities in the growing CRE distressed marketplace,” according to a Square Mile statement. “Among other advantages, it provides improved access to sponsor capital.”
In a joint news release, USAA Real Estate Chairman and CEO Pat Duncan stated, “by investing in the Square Mile platform, we hope to broaden the investment opportunities we can offer our clients."