With Harbour Equity JV Fund VI closing and more than $80 million locked in — and a second closing that could bring up to $60 million more —Providing capital to developers in urban and surrounding markets, Harbour Equity’s deals have generated an estimated $2.5 billion in real estate value across 60 developments. And 2022 promises a fascinating case study — a waning pandemic and relentless housing demand; but also rising interest rates, inflation and building costs.
“When all is said and done, our approach remains more or less the same,” Silverberg says. “We want to be able to acquire land at a reasonable price, and to do so with developers that are going to be able to execute — getting through an approval process, a sales process, and a construction process.”Harbour Equity invests primarily in ground-up residential projects, including both for-sale and purpose-built rental, with development cycles of between three and six years.
“We’re very cognizant of hitting IRR targets for our investors, which have two components — how much money you can make, and how long it takes,” he says. “We do try and curtail the time and the way we invest our equity to push that IRR as high as possible.”Beyond projects, Harbour Equity has an ideal profile for their developer partners, too.
“The development partner would run the day-to-day operations and be paid a management fee for doing so,” Silverberg says. “We would be more passive than active but we would have major decision approval and we would certainly try and help wherever possible.”