January 30, 2019 | Press Release
HQ Capital Real Estate’s Current Income Fund Fully Realized
New York, NY / Bad Homburg, 30 January 2019 – HQ Capital, a leading independent manager of alternative investments, announces its RECAP Current Income Fund is fully realized. The $60 million Fund, sponsored by HQ Capital Real Estate in 2013, was offered as an alternative to the firm’s typical opportunistic multifamily strategy in that it focused on investments in existing core-plus and value-add multifamily properties, which would deliver stable current returns.
RECAP Current Income Fund sold its final investment in December 2018, generating an overall gross fund IRR of 17% over an investment period of five years. The Fund’s investments, located throughout the U.S. in Arizona, Texas, Tennessee and North Carolina, consisted of five well-located and well-leased properties totaling 1,504 apartment units. The Fund was able to increase the value of these highly desirable apartment communities through modest upgrades and superior management. The properties were sold in a series of individual sales between December 2017 and December 2018.
“We are pleased that RECAP Current Income Fund outperformed its original underwriting,” said Paul Doocy, Co-Head of Real Estate at HQ Capital. “We were able to generate attractive current returns as well as exit these investments at an opportunistic time in which demand for U.S. value-add multifamily properties is very high.”
The Fund’s strategy was consistent with HQ Capital’s 30-year multifamily investment approach of investing in select high-growth markets.