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HIG raises half of $500m fund

The New York-based firm held a first close last quarter for its third fund on $253 million.

HIG Realty Partners has lined up more than half the capital for its latest fund. PERE understands the firm held a first close at the end of 2015 with $253 million for HIG Realty Partners III. The firm launched the value-add and opportunistic fund in the summer of 2014 with a $500 million target.

The New York-based firm declined to comment on fundraising.

The firm works through joint ventures with local operating partners in the top 25 US markets to acquire properties across asset classes that need to be repositioned, renovated or leased up, a strategy similar to how the firm ran its first two funds. HIG typically makes investments in the $10 million to $30 million range.

HIG is not using a placement agent for the fund.

Last month, the firm announced it purchased the Hyatt Regency in Cincinnati, Ohio with Silverpeak Real Estate Partners and Davidson Investment Group. The price for the 491-room hotel was not disclosed. The partners purchased a similar Hyatt in Indianapolis, Indiana in May.

HIG Realty was founded in 2012 with $3 billion from parent firm HIG Capital, a Miami private equity firm. HIG Realty now has $19 billion in assets under management, according to its website. The firm was formerly known as Cronus Capital. It completed raised $200 million in 2007 for a value-add vehicle called Cronus Real Estate Fund. Investors included the Prospect Hill Foundation, according to PERE Research & Analytics.