HFZ Capital’s Ziel Feldman, known for luxury condo developments, has launched a new fund for REIT investment.
The developer, along with a group of partners that includes Lionbridge Capital, plans to purchase shares of publicly traded real estate investment trusts that may be undervalued because of the pandemic, according to Bloomberg.
The group has put $50 million of seed money and hopes to raise up to $500 million.
“We’re in the very businesses we’re investing in,” Feldman told Bloomberg. “We have real-time information from brokers [and] we’re seeing the rent collections and leasing activity from our own portfolio.”
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The venture has already purchased stakes in Vornado Realty Trust and Ventas.
“The highest returns you can get today are in the public market,” said HFZ’s Adam Feldman, who is the co-manager of the fund.
The move is a shift away from Manhattan’s condo market, which HFZ has invested heavily in, but which has been hurting for some time.
After the pandemic hit, an already sluggish sales environment dried up even further as home showings were called off and economic uncertainty set in. Because of the conditions, developers — including HFZ — have entertained bulk deals.
[Bloomberg] — Sylvia Varnham O’Regan