GFG-backed real estate start-up holds $25m first close

Momentum Real Estate Partners has held a $25 million first close on its debut vehicle little more than a year after founding the business.

Miami-based wealth management firm GFG created Momentum as its real estate investment arm in 2009, with plans to raise a $75 million multifamily fund. The vehicle held its initial close on 30 July raising capital from US and Latin American high-net-worth individuals, with plans for a final close in the next six to 12 months.

Led by real estate director Jaime Garcia, the Momentum fund will target distressed multifamily assets in the sunbelt region of the US, including failed condo conversions, foreclosed and real estate owned properties as well we performing and non-performing assets and mortgages. It is expected to target IRRs of around 15 percent.

Garcia said the sunbelt region, which stretches across the South of the US and includes Florida, Texas and Southern California, had experienced significant distress, creating opportunities for firms with capital. Over the next few months, Momentum expected to close one or two deals in the $5 million to $10 million range.

Garcia previously worked at industrial developer and fund manager ProLogis after graduating from the Wharton Business School in 2006. He has also worked for Mexican low-income housing developer Casas GEO and founded the development firm J&M Development in 1998.

GFG founders Mauricio and Eduardo Gruener sit on Momentum’s investment committee. The brothers were formerly vice presidents at Credit Suisse First Boston and Deustche Bank Securities respectively, Mauricio in Credit Suisse’s private client division and Eduardo with Deutsche Bank Securities’ global corporate and investment banking division.