Hudson Realty Capital
Since its formation in 2003, Hudson Realty Capital LLC (Hudson or HRC), has managed four real estate private equity funds that have executed a strategy of investment in a broad range of real estate-related high yield debt and opportunistic equity investments throughout the United States. Hudson is a qualified minority and women owned business enterprise.
Hudson's investment strategy focuses on the underserved market requiring approximately $2-$30 million of capital per transaction. Hudson targets investments that offer calculated risk adjusted returns. Targeted investments include:
- Acquisitions of sub- and non-performing debt
- Financing of third party debt acquisitions
- Discounted acquisitions of performing debt
- Originations of first mortgage and subordinate debt
- Preferred and pari-passu equity investments
- Recapitalization of operating partnerships
In order to execute its strategy of focusing on distressed sellers and assets, assets in transition, and complex legal structures, Hudson has developed underwriting procedures, asset management skills and systems that are calibrated to respond to the evolving real estate environment. Hudson's expertise in a range of property markets and its extensive network of property owners, lenders (both local and national) and other real estate professionals provides real time market insight. These capabilities and tools are essential to effectively navigating today's volatile real estate climate.
Hudson's ability to execute and manage complex real estate transactions has been recognized by some of the most prominent service providers and investors in the industry. Over the firm's six year history, it has developed business relationships with leading investment banks, law firms and accounting firms which enable the firm to execute, document, manage and report on its investments in an expeditious and confidential manner.
Hudson has raised in excess of $1.1 billion of equity from individuals, public and private pension plans, endowments, and foundations, including "repeat investors" seeking increased exposure to HRC's demonstrated expertise.
In Hudson's view, the turmoil in the credit and capital markets creates opportunities uniquely suited to its investment strategy and discipline. Opportunities created by current market conditions include:
Purchase of performing and non-performing discounted debt
There is a broad spectrum of distressed or liquidity-constrained sellers including investment banks, CDO lenders, regional banks, savings and loan institutions, and the FDIC liquidating loans or pools of loans.
Originate high yield debt investments
The retreat of more traditional real estate lender is resulting in attractive risk-adjusted returns on first mortgage loans, and more stringent underwriting by first mortgage lenders is creating additional demand for subordinate debt at higher yields while lower in the capital stack.
Source compelling equity and preferred equity investments
Current market conditions have increased demand for equity to capitalize on the acquisition and recapitalization of distressed assets as well as liquidity constrained franchises.
While there are significant opportunities resulting from the credit crisis, every real estate investment must be evaluated on the basis of sound real estate fundamentals. Hudson's due diligence process, developed over two decades, examines a range of scenarios with strong emphasis on the downside risks. In addition, since its founding Hudson has focused on complex, management-intensive assets. The skills and management tools developed over Hudson's history are well suited for the current challenging economic conditions.
Hudson will selectively consider investments in all real estate asset types in markets throughout the United States. In addition, Hudson will consider investments at any stage in the lifecycle of an asset or pool of assets.
Since its formation in 2003, Hudson has closed approximately 160 transactions with an asset value in excess of $3 Billion. Hudson currently has approximately $2 Billion in assets under management.