Highline Real Estate Capital, a real estate investment and advisory firm based in Miami led by distressed real estate experts David Moret, Matt Papunen, and David Milgram, is preparing to take advantage of upcoming acquisition opportunities throughout the Southeastern U.S. The firm has recently launched a value-add real estate fund with a projected total purchasing power of $350 million.
The initial closing for the newly launched Highline Real Estate Fund 1, LP, has been completed, with the fund expected to include up to $75 million in discretional capital commitments, $100 million in joint venture commitments, and $175 million of debt financing. Highline Real Estate Capital will use the fund to search for opportunities to acquire distressed and value-add properties in the office, retail, multifamily, and industrial sectors. The acquisitions will be made through direct investments, joint ventures, and rescue capital provided to existing property owners.
“We have seen dramatic changes in the capital markets since the Federal Reserve commenced its rate-hike cycle, which is creating significant dislocation in the real estate market,” Moret says. “The Southeast region is in a unique environment where operating fundamentals remain reasonably strong, but the restricted debt landscape, asset value declines and wave of loan maturities are poised to cause distress.”
Highline Real Estate Capital has been successfully investing in commercial real estate since its establishment in 2016 and has achieved an average equity multiple of 2.67x for its investors. The firm’s current portfolio comprises office, retail, and multifamily assets across the Southeast region.
“We are in the early stages of what we expect to be an extraordinary opportunity to acquire high-quality, performing assets at extremely attractive prices,” Papunen says. “Seizing this opportunity requires fresh capital and the expertise to allocate it strategically. Our fund is in a prime position to move quickly on such acquisitions.”