Salt Lake City, Utah-based Harbor Capital Partners is launching a $25 million private equity fund that will invest in longer term opportunistic real estate projects.
The new vehicle, the Harbor Realty Opportunity Fund, will focus on smaller-sized multi-family and mixed-use commercial projects. The fund will typically make cash equity infusions of between $2 million and $5 million into an expected total of six to eight development projects.
The Harbor managers will focus primarily on projects in the intermountain west, where Harbor has already provided over $350 million in funding to more than 250 real estate projects through its existing ABL fund.
“We know this market quite well and are in continual contact with most of the local developers,” says Harbor Capital Partners’ Principal Ryan Relyea.
Principal Phil Holmes adds, “These micro-projects often possess significant value, but have fallen off of the radar screen of most large real estate investors.”
The new fund is targeting returns of 20% to 25% net of fees per annum with a preferred return to investors of 12% per annum.
Harbor, which was founded in 1999, currently manages an $80 million asset backed lending fund dubbed the Harbor Real Asset Fund.