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August 24, 2017 | Press Release

HQ Capital raises over US$150 million real estate fund

HQ Capital, a leading independent investment manager for alternative investments, has announced the final closing of its U.S. multifamily opportunistic real estate fund, RECAP Opportunity Fund II, L.P., with US$152 million, exceeding its target fundraising amount.

RECAP Opportunity Fund II, L.P. continues to pursue the primary strategy of the firm’s prior opportunistic funds by making investments in joint venture ground-up development and select value-add acquisitions of multifamily rental properties located in growth-oriented markets throughout the U.S. To date, the fund has closed on eight investments across the U.S.: six multifamily rental development projects and two multifamily rental value-add properties. The fund is expected to be fully committed by the end of 2017.

“We continue to see strong interest from investors for U.S. multifamily real estate,” said Paul Doocy, Co-Head of Real Estate. “Compelling demographics, steady job growth and relative affordability are the key drivers of this strategy.”

RECAP Opportunity Fund II, L.P. is the 29th fund sponsored by HQ Capital Real Estate, the real estate division of HQ Capital. The firm has successfully employed its U.S. multifamily opportunistic strategy since 1994, creating value through joint ventures with best-in-class partners to develop Class A multifamily properties at an attractive cost basis that is at a discount to prevailing market pricing of stabilized properties.

“We are pleased with the investments the fund has made to date. The investments are diversified across markets and partners, and we continue to source attractive investment opportunities across several markets through our extensive network of partners,” added Michael Fruchtman, Head of Real Estate Investments.

HQ Capital Real Estate will employ this strategy in its next opportunistic fund, which is expected to launch Fall 2017. “Strong U.S. economic and demographic fundamentals are forecasted to continue. Our 28 years of experience, strong track record and well-established network make us well-positioned in this market,” said Mr. Doocy. “The U.S. multifamily market has provided historically stable returns over the past three decades, and we believe it will continue to offer attractive risk-adjusted return opportunities.”