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Sector
HG Capital invests in a wide variety of commercial and residential projects, ranging from single-family homes to office, industrial, R&D, retail, multi-family, mixed-use, and land development projects.
Geography
California, Nevada, Arizona, and Hawaii are the focus of HG Capital's activity, though we will consider investments throughout the western United States.
Size of Investment
In the form of equity or participating debt, HG Capital will typically invest in amounts ranging up to $15 million per project.
Term of Investment
HG Capital has the capacity to make longer term investments. The HG Capital funds can hold investments for a term of 1 year to 8+ years.
Form of Investment
HG Capital primarily makes equity investments with the developer through a single-purpose limited liability company (LLC). The Project LLC owns the property and the developer is responsible for operating each Project LLC.
In some cases, HG Capital will structure its investment as participating debt.
Exit Strategy
For commercial projects, the primary exit strategy is to sell the asset to a third party. In some cases, HG Capital will structure its exit through a refinance of the property or a redemption of HG Capital's interest in the project.
Process
HG Capital's management team has complete discretion over investment decisions and the documentation process, which allows it the speed and flexibility that is often critically important to the success of a real estate transaction.
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