Miami firm to raise $200M for fund to buy distressed commercial real estate loans

Safe Harbor Equity has doubled its initial target goal from $100M
June 29, 2019 01:00PM

Safe Harbor Equity is raising $200 million to buy distressed real estate loans (Credit: iStock)

Safe Harbor Equity is raising $200 million to buy distressed real estate loans (Credit: iStock)

A Miami-based private equity firm is doubling its fundraising goal to $200 million to buy up distressed commercial real estate loans.

Safe Harbor Equity founder, Ralph Serrano, said recent European and Asian fundraising tours revealed investors are eager to contribute to a distressed commercial real estate debt fund. Accordingly, despite having not yet raised the initial target of $100 million, the firm is “scaling it up to $200 million,” he told Forbes.

While commercial development in South Florida is currently healthy, Serrano is still confident now is still a good time to start the fund, especially as foreclosures increase in the area.

One recent foreclosure was initiated by Madison Realty Capital over $40.6 million of allegedly delinquent construction debt for Costa Hollywood Beach Resort, a new 326-unit condo-hotel in Hollywood.

Besides Safe Harbor Equity. London-based Cheyne Capital and New York City-based Churchill Real Estate Holdings are among the private equity firms looking to profit from the distressed loans.

Churchill started a $200 million fund dedicated to debt on failed condo developments and struggling retail properties. Cheyne, on the other hand, raised $1.1 billion for a fund that will acquire distressed loans from European banks that want to shrink their loan portfolios to comply with new regulatory and accounting standards. [Forbes] – Mike Seemuth