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.