Iron Stone Real Estate is raising a $75 million fund to target under- and non-performing first mortgage property loans in the Philadelphia region.
The fund has raised $23.1 million to date, according to US regulatory filings. It is expected to hold a second close on $35 million within the next month or so, according to Iron Stone partner Jason Friedland.
The vehicle, Iron Stone Real Estate Fund II, is primarily targeting multifamily assets within a two-hour drive of Philadelphia, including Washington DC and northern areas of New Jersey.
Friedland said the firm was looking to the first lien space as it sought to invest between $1 million and $20 million per deal. As a developer and owner, Iron Stone can take over the running of multifamily properties, although Friedland said the firm would also try to seek financing for certain assets.
“We are seeing more and more opportunities [in multifamily],” said Friedland. However he noted that they were still “few and far between. What we are seeing is banks finally coming round to selling their most impaired loans. But there is still a lot more on the horizon.”
Iron Stone Real Estate II was launched in July 2008, and investors include priedominantly high-net-worth individuals.