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Hayden launches debut institutional fund

The Lake Oswego, Oregon-based firm is targeting $200m for its Real Estate Distress Fund. The vehicle will focus on distressed multifamily apartments, particularly in the Sunbelt states.

Hayden Capital Investments is targeting $200 million for its first institutional private equity real estate fund.

The Lake Oswego, Oregon-based firm is hoping to take advantage of the credit squeeze among multifamily investors, acquiring rental apartments from distressed sellers particularly in the Sunbelt states, stretching from Southern California to Florida.

Hayden Capital is targeting gross IRRs of around 20 percent, according to people familiar with the matter, with plans to acquire properties over the next two to three years.

“There is tremendous deal flow at the moment in terms of multifamily properties,” the source said. “A lot of people are unable to refinance today because they paid too much for buildings.” The 10-year fund plans to exit most of its investments between 2013 and 2016, fund documents seen by PERE added.

Hayden Capital is sponsored by Hayden Properties, a development company founded by Rick Hayden in the early 1990s. Hayden Properties has previously sponsored funds with high-net-worth investors. A spokesman for Hayden Properties and Capital declined to comment.

Multifamily rental apartments have increasingly been seen as a recession-resistant sector in the US. Henderson Global Investors, Kennedy Wilson and BPG are among dozens of private equity real estate firms to actively acquire multifamily properties over the past six months.

In December, Henderson bought a 204-unit multifamily housing complex on the outskirts of Boston for $48.5 million through its $205 million value-added multifamily fund, CASA IV. The deal was the fund’s ninth acquisition.