Florida fund seeks $25m

Terracap Partners is raising its debut fund targeting distressed properties in Florida and IRRs up to 27%.

Cape Coral, Florida-based Terracap Partners is continuing to driving towards its $25 million fundraising target for its Florida-focused Capital Appreciation Distressed Real Estate fund after holding a first close on an undisclosed amount in October 2008.

High-net-worth individuals are being targeted in the fundraising process which has a minimum investment of $50,000, according to marketing documents obtained by PERE.

The firm is targeting a gross internal rate of return of between 22 percent and 27 percent by purchasing single family, multifamily, commercial and retail properties at discounts of up to 70 percent. The geographic focus will be on Florida although investments may be made elsewhere in the US, the documents said.

Terracap plans to be fully invested within one year after the final close and be fully divested within seven years.

Terracap to date has purchased a 25-acre mixed use property and a 10 acre mixed use property in Desoto County, Florida and has definitive purchase agreements for two multifamily properties on Florida’s Peace River.

The firm’s managing principal is Steve Hagenbuckle who since 2000 has focused on personal real estate investment. He began investing in real estate in 1997 and has since completed $81 million of transactions. Hagenbuckle earlier co-founded ORUS Information Services in 1998 and co-founded Techware Consulting in 1995.