The new fund, which has already completed its first round of financing, will focus on value-added deals in the range of $1.5 million to $10 million.
Such deals are smaller than the transactions of larger funds that offer debt and equity financing comparable to that provided by Haverford, David B. Blenko, president/CEO of Haverford Capital, tells GlobeSt.com."The business we're looking at falls below the radar screen of many of the larger funds," Blenko say. "We typically look at properties that offer us some opportunity to add value."
Haverford, whose investors are mainly institutions and high net worth individuals, invested $2.6 million in equity financing, including funds for renovations and acquisition of a 116-unit apartment complex called Madison Woods in Sacramento, Calif., that sold for $7.57 million.About $20 million of other equity and mezzanine capital deals are already in the pipeline and will close by the end of the year, Blenko says. Haverford's new fund expects to hold the properties for 18 months to three years, he says.
"We think there's a good opportunity for a fund like this now because, although there are a lot of mezzanine and equity funds, many are large and are not dedicated to the middle market," Blenko notes.
Haverford has provided mezzanine financing or equity for more than 30 projects of all types valued at over $900 million in recent years. The company is an affiliate of El Segundo-based Highridge Partners, a national real estate investment firm that has acquired, developed and managed more than $3 billion of real estate projects in the past decade.
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