Real estate start-up holds $25m first close

Momentum Real Estate Partners eyes final close in the next year for its debut vehicle, as it targets distressed multifamily in the US Sunbelt region.

Momentum Real Estate Partners has held a $25 million first close on its debut fund.

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 as performing and non-performing assets and mortgages.

The vehicle, Momentum Real Estate Fund I, held its initial close on 30 July, raising capital from US and Latin American high-net-worth individuals, according to marketing documents seen by PERE and people familiar with the matter.

The fund is eyeing a final close of up to $75 million in the next six to 12 months and is expected to target IRRs of around 15 percent. It will invest in multifamily assets across the south of the US, including Florida, Texas and southern California, and target deals in the $5 million to $10 million range.

Momentum was created as the real estate investment arm of Miami-based wealth management firm GFG in 2009. GFG was founded by brothers Mauricio and Eduardo Gruener, who were formerly vice presidents at Credit Suisse First Boston and Deustche Bank Securities, respectively.