Banking on a strong real estate recovery, the New York-based investment firm Angelo, Gordon & Co. presented plans to launch a new residential and commercial mortgage fund, Bloomberg News reported. The AG Securitized Asset Recovery Fund, or STAR, will invest in residential and commercial mortgage securities, the lender said, with the goal of net returns of 15 percent. It said it hoped for profits as high as 25 percent, which would be attainable in the event of a solid upswing in the housing market.
“After several years of continued declines in housing and commercial real estate pricing, Angelo Gordon is now cautiously optimistic that a nascent recovery is beginning in these markets,” a firm representative said in the presentation.
Angelo, Gordon has been an active player in the New York City real estate scene since the downturn. Recent deals include the condo conversions at 680 Madison Avenue and the Printing House at 421 Hudson Street, last year’s partnership with Vantage to acquire a portfolio of 2,200 apartment units in central New Jersey and last summer’s sale of the Chelsea Market to Jamestown Properties. [Bloomberg] – Christopher Cameron