New York City-Based Real Estate Fund Manager’s Fifth Fund Raises $250 Million for Middle-Market Investments
NEW YORK, N.Y. – January 11, 2012 – (RealEstateRama) — Hudson Realty Capital LLC, a real estate fund manager with more than $2 billion of assets currently under management, funded more than $120 million in new originations and $400 million in loan portfolio acquisitions in the past 12 months. The Manhattan-based company also held the final close of its fifth fund, which netted a high-end fundraising goal of $250 million, in December.
“Hudson had an exceptional 2011 where we were able to successfully execute our business strategy of originating and purchasing middle-market debt while expanding our portfolio investment platform,” said Spencer Garfield, managing director. “In the coming 12 to 18 months, our activities will continue to focus on new originations and purchasing senior debt as there remains a bifurcation in capital available for assets in the $5 million to $35 million range in secondary and tertiary markets nationwide.”
Currently, Hudson has more than $2 billion of assets under management and has closed more than $3.5 million in transactions since the formation of its initial two funds in 2003. The company’s activities include originating, purchasing, servicing and restructuring special-situation debt. Hudson also invests directly in real estate and acquires underperforming assets and other real-estate related instruments.
Recent transaction highlights include a $9.12 million first mortgage loan involving an 810-unit, 49-building apartment complex in Houston, Texas; an $11.6 million construction loan for the condominium conversion of a vacant commercial property in Brooklyn, N.Y.; and $13.1 million in note acquisition financing secured by a power retail center located in central Mississippi.
In addition, Hudson is active in large loan-portfolio acquisitions and asset management activities. As part of its Fund V investment strategy, the company recently acquired two FDIC pools. These include a $139 million Colorado portfolio of 97 acquisition, development and construction (ADC) loans and southeastern pool of 109 commercial real estate assets with an unpaid principal balance valued in excess of $102 million.
“The flow of capital will continue to be slow in reaching Class-B and secondary markets, so conditions will continue to play into our areas of expertise and put our product into even greater demand,” added Garfield.
To meet this heightened demand, Hudson opened a new southeastern regional office in Fort Myers, Florida, and expanded its senior staff with the addition of several widely respected industry veterans. The company’s re-entry into the Florida market with the FDIC southeastern pool acquisition includes growing its presence with additional acquisitions as well as direct lending.
In addition to its Manhattan headquarters and the new Fort Myers office, Hudson also maintains a northeast office in Portland, Maine. Established as a Minority-Owned Business Enterprise (MBE), the company was honored as a “2011 Champion of Diversity.” Hudson also has been named among the New York Area’s largest privately held companies and largest minority owned companies, as well as one of the Top 25 lenders nationally.
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Media Contact:
Carin McDonald / 201-796-7788 / carin (at) caryl (dot) com
