HFZ Capital launches new fund for REIT investing
HFZ Capital’s Ziel Feldman, known for luxury condo developments,
has launched a new fund for REIT investment.
The developer, along with a group of partners that includes
Lionbridge Capital, plans to purchase shares of publicly traded real estate
investment trusts that may be undervalued because of the pandemic, according to
Bloomberg.
The group has put $50 million of seed money and hopes to
raise up to $500 million.
“We’re in the very businesses we’re investing in,” Feldman
told Bloomberg. “We have real-time information from brokers [and] we’re seeing
the rent collections and leasing activity from our own portfolio.”
The venture has already purchased stakes in Vornado Realty
Trust and Ventas.
“The highest returns you can get today are in the public
market,” said HFZ’s Adam Feldman, who is the co-manager of the fund.
The move is a shift away from Manhattan’s condo market,
which HFZ has invested heavily in, but which has been hurting for some time.
After the pandemic hit, an already sluggish sales
environment dried up even further as home showings were called off and economic
uncertainty set in. Because of the conditions, developers — including HFZ
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