Safe Harbor Equity launches $100M distressed debt fund

Fund will target distressed mortgages in Florida, New York, California and Texas

TRD MIAMI /
May.May 07, 2019 04:30 PM
Ralph Serrano (Credit: LinkedIn)

Ralph Serrano (Credit: LinkedIn)

Safe Harbor Equity launched a $100 million distressed commercial real estate debt fund ahead of a potentially looming recession.

The Miami-based private equity firm, which specializes in distressed commercial and residential real estate loans, is considering raising the fund up to $200 million, said managing director Ralph Serrano.

The Safe Harbor Equity Distressed Debt Fund 3 will focus on acquiring distressed commercial mortgages primarily in South Florida, in addition to markets like New York, Texas, California and other major marks in the U.S., Serrano said.

“While we do see a steady stream of defaults, it’s not required for there to be a recession for there to be defaults,” he said. But the goal is “to be well-positioned for the oncoming economic headwinds that are being forecasted.”

The fund is hoping to capitalize on banks looking get non-performing loans off their books. It will acquire distressed corporate loans starting at $500,000 and up to $20 million for properties that include multifamily, industrial, retail and hotels.

Safe Harbor launched two previous funds in 2015 and 2016. The first one purchased about $30 million of distressed loans, and the second acquired more than $100 million of loans. Both generated returns “in the [high] teens,” Serrano said. The firm also hired four employees to meet the demand it anticipates the third fund will generate.

Other investment companies have launched and closed similar funds ahead of an economic recession. Churchill Real Estate Holdings, a New York-based firm,  has been trying to raise a a $200 million distressed debt fund focusing on a variety of real estate assets from failed condo projects to struggling retail properties.


Related Articles

arrow_forward_ios
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)

Southland Mall’s troubled $65M CMBS loan for sale

Southland Mall’s troubled $65M CMBS loan for sale
Alan Ojeda and 8894 NW 44 Street in Sunrise (Google Maps)

Rilea Group scores $46M construction loan for Sunrise apartments

Rilea Group scores $46M construction loan for Sunrise apartments
Yard 8 and Wood Partners CEO Joseph Keough (Courtesy of ACRE)

Wood Partners lands $86M refi for Midtown Miami apartments

Wood Partners lands $86M refi for Midtown Miami apartments
Masoud Shojaee and a rendering of Shoma Village 

Shoma Group scores $67M loan for mixed-use Hialeah project

Shoma Group scores $67M loan for mixed-use Hialeah project
Housing Trust Group CEO and president Matt Rieger and Hudson Village renderings

HTG scores financing for Hollywood affordable housing project

HTG scores financing for Hollywood affordable housing project
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Fortune International Group’s Edgardo Defortuna, Château Group’s Manuel Grosskopf and a rendering of the project

Fortune and Château score $119M refi for Sunny Isles condo project

Fortune and Château score $119M refi for Sunny Isles condo project
Rendering of the project and from left: Vince Signorello, Ricardo Caporal and Greg West

Zom Living, partners score $57M loan for Ludlam Trail project

Zom Living, partners score $57M loan for Ludlam Trail project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...