New York/Bad Homburg, December 11, 2019. HQ Capital Real Estate has announced the final closing of its U.S. multifamily opportunistic real estate fund, RECAP Opportunity Fund III, with more than $255 million in total equity commitments, surpassing its target fundraising amount. The fund represents the largest individual real estate fund in the company’s 30-year history.
RECAP Opportunity Fund III continues to pursue the firm’s historical strategy of focusing on investments in ground-up development and select value-add acquisitions of multifamily properties located in growth-oriented markets throughout the United States. To date, the fund has closed on eight investments in Denver, Atlanta, Boston, Fort Worth, Tampa, Fort Lauderdale, and Houston. An additional three investments are expected to close by First Quarter 2020, with plans for the fund to be fully committed prior to the end of 2020.
“U.S. multifamily continues to offer solid risk-adjusted returns that are attractive to an increasing number of investors,” said Paul Doocy, Co-Head of HQ Capital Real Estate. “Compelling demographics, steady job growth and relative affordability are the key drivers of the success for this investment strategy.”
RECAP Opportunity Fund III is the 30th fund sponsored by HQ Capital Real Estate. The firm has successfully executed its U.S. multifamily opportunistic fund strategy since 1994, creating value by partnering with best-in-class local developers and operators to invest in Class A multifamily properties. Since its inception in 1989, HQ Capital Real Estate has invested in approximately $8.6 billion of multifamily properties.
“We are very pleased with the pace at which our capital is being deployed and the investments the fund has made to date. These investments are diversified across markets and partners, and we continue to source attractive opportunities across several markets through our extensive network,” said Jeremy Katz, Co-Head of HQ Capital Real Estate.
HQ Capital Real Estate plans to continue to focus on its multifamily strategy. “Strong U.S. economic and demographic fundamentals, which support demand for multifamily, are projected to continue. Our 30 years of experience, well-established relationships and strong track record make us a trusted and preferred partner in this space,” Mr. Katz continued.
“The U.S. real estate market has provided historically stable returns over the past three decades and is expected to continue to offer attractive return opportunities. As a specialist in U.S. multifamily real estate investments with a proven track record, HQ Capital Real Estate is well-positioned for future growth and success,” Dr. Bernd Tuerk, CEO of HQ Capital, remarked.
