November 6, 2018 | Press Release
HQ Capital Expands its Multifamily Housing Portfolio
New York, NY/Bad Homburg, 6 November 2018 – HQ Capital, a leading independent manager of alternative investments, announces its $152 million RECAP Opportunity Fund II is fully invested. The Fund, sponsored by HQ Capital Real Estate, closed in August 2017 and focuses on U.S. opportunistic and value-add multifamily investments, consistent with the firm’s investment philosophy over three decades.
RECAP Opportunity Fund II closed on its final investment, a 116-bed assisted living and memory care development located in Nashville, Tennessee, last week. The Fund’s investments consist of 12 properties, representing 3,004 apartments. The investments include 10 development projects and two value-add acquisitions that are geographically diversified throughout the U.S. in California, Oregon, Arizona, Illinois, North Carolina, Tennessee, Georgia and Florida.
“Our strategy is to focus on select development and value-add projects within Growth markets that can provide attractive risk-adjusted returns,” said Jeremy Katz, Co-Head of Real Estate at HQ Capital. “The U.S. rental apartment market continues to show sustained strength, and we see ongoing demand from buyers to acquire these newly-renovated or constructed properties. As an investor in the U.S. multifamily market for more than 29 years, we are well-positioned with access to a strong pipeline of real estate investment opportunities.”
RECAP Opportunity Fund II’s first sale closed in August 2018. The partnership sold a 288-unit apartment development located in Tampa, Florida to a private institutional investor. Two additional investments are under contract and scheduled to close by year-end 2018.
HQ Capital Real Estate invests in Growth markets throughout the U.S. with a diversified network of joint venture partners, which includes some of the top developers and operators. It has sponsored 30 funds focused primarily on opportunistic development and acquisition of multifamily residential properties. Typical multifamily fund investments include rental apartments as well as student and senior housing projects with an individual target holding period of three to five years.