CrossHarbor Capital Overview

Founded in 1993 by loan workout and property turnaround specialists, CrossHarbor is a long-standing, privately-owned investment and asset management firm focused exclusively on commercial real estate located within the United States. The firm manages multiple fund strategies that invest across the risk/return spectrum on behalf of a diversified and highly regarded group of endowments, foundations, public and corporate pension plans, financial institutions, family offices and sovereign entities.

27

YEARS IN BUSINESS

$17 B

INVESTMENT TRACK RECORD

270+

TRANSACTIONS

52

EMPLOYEES

$5.9 B

AUM

90+

INSTITUTIONAL INVESTORS

Our Mission

Successful commercial real estate investing depends on thorough analysis, not whimsical prediction. CrossHarbor believes good fortune in investing is the product of good thinking. The firm’s goal is to apply disciplined bottom-up analytical procedures, sophisticated legal and financial structures, and proactive asset management to transactions that possess a value-oriented investment thesis.

For nearly three decades, CrossHarbor has been a national leader in the commercial real estate private equity industry. The firm combines a vast origination platform, a disciplined investment strategy, and highly experienced professionals to generate risk-adjusted investment returns that rank CrossHarbor among the top performers within its field.

Ways We Invest

CrossHarbor’s investments are structured in numerous capital forms including equity, preferred equity, mezzanine loans, and senior loans. CrossHarbor determines its capital structure for a particular transaction on the merits of investment basis, capital preservation, and risk-adjusted return.

  • Joint Venture & Direct Equity
  • Mezzanine Debt & Preferred Equity
  • Senior Loans

CrossHarbor invests substantial equity capital in collaboration with experienced third-party JV sponsors as well as on a direct basis without outside operators. Short and medium duration transactions with compelling IRRs and absolute returns are sourced for CrossHarbor’s closed-end Value Add/Opportunity Funds. Longer dated equity investments with core and core-plus risk/return profiles are sourced for the firm’s Separately Managed Accounts and its Build-to-Core Multifamily program.

Sophisticated property owners often seek CrossHarbor’s expertise as a “gap” financing source. Working on a tri-party basis alongside experienced owners and their senior lenders, the firm provides mezzanine loan and preferred equity solutions that prudently leverage a property beyond the customary thresholds of commercial banks and life insurance companies. These financings are high yield in nature, flexibly structured with accrual or equity participation features, and funded by CrossHarbor’s closed-end Value Add/Opportunity Funds.

CrossHarbor is an active lender to astute owners of core, core-plus, and transitional properties located in primary and secondary U.S. markets. The firm’s loans are short-duration (18-60 months), floating-rate, and flexibly structured to facilitate the collateral’s underlying business plan. Moderate yield loans supported by stabilized, near stabilized and light transitional properties are funded by CrossHarbor’s open-end Senior Debt Income Fund. High yield loans collateralized by properties undergoing significant development, re-positioning, or with similar risk profiles are funded by CrossHarbor’s closed-end Value Add/Opportunity Funds.

Eligible Properties

CrossHarbor’s singular focus is preserving capital while maximizing returns and minimizing risk.

CrossHarbor invests in single property transactions, multiple property portfolios, and real estate-related operating companies. The firm acquires and operates properties for its own account and actively invests in transactions with joint venture operating partners and third party borrowers.

All major commercial real estate asset classes located throughout the United States are eligible for investment consideration including office, warehouse/industrial, retail, apartments, hotel/resort, land, for-sale residential, and mixed-use properties.

CrossHarbor Sponsored Investment Vehicles

CrossHarbor manages several investment programs each of which has a distinct risk/return profile and non-overlapping strategy. The firm’s funding is typically discretionary and is derived from institutional commingled funds and separate accounts sponsored and managed by CrossHarbor. The firm’s investors include a diversified and highly regarded group of endowments, foundations, public and corporate pension plans, financial institutions, family offices, and sovereign entities. For more than 27 years, CrossHarbor has cultivated these relationships with the highest standard of fiduciary care, transparent communication, and outstanding investment performance.

Flagship Value Add / Opportunity Fund

An investment thesis rooted in property-level operational enhancements as well as pricing advantages that arise from distressed, complex, and dislocated...

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Senior Debt
Income Fund

Compelling quarterly cash distributions to investors from an open-end fund comprised of a short duration loan portfolio with prudent credit metrics and...

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Build-to-Core
Multifamily Fund

A lower volatility strategy focused on investing in a series of customized portfolios of multifamily development properties that provide attractive current...

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SMAs & Special
Situations

A tailored collection of discretionary and non-discretionary investment strategies designed to meet the specific objectives of institutional investors who wish...

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Flagship Value Add / Opportunity Fund

An investment thesis rooted in property-level operational enhancements as well as pricing advantages that arise from distressed, complex, and dislocated scenarios.

  • A: Flagship Value Add / Opportunity Fund
  • B: Senior Debt
    Income Fund
  • C: Build-to-Core
    Multifamily Fund
  • D: SMAs & Special
    Situations
BACK TO INVESTMENT VEHICLES

Overview

CrossHarbor targets underperforming properties that may generate improved cash flow from the implementation of a clearly defined and well-executed operating strategy. In addition, the firm seeks out temporarily illiquid situations and related pricing advantages that arise from distressed, complex, and dislocated circumstances. The firm rejects transactions whereby the sole contributor to yield enhancement is the utilization of leverage. This “value” philosophy fosters the creation of secondary and tertiary exit strategies for investments and moderates the impact of uncontrollable, adverse capital market fluctuations.

Pricing Advantages
  • Off-market transactions
  • Mispriced or out-of-favor credit
  • Structured finance applications
  • Rapid funding requirements
  • Temporary market dislocations
  • Illiquid conditions
  • Corporate dispositions
  • Complex tax, ownership or capital structures
Under-Performing Assets
  • Vacancy issues
  • Below market rents
  • Bloated operating expenses
  • Capital deficiencies
  • Reputational issues
  • Poor management
Compelling Event-Driven Strategies
  • New development
  • Renovation, redevelopment
  • Conversion, adaptive reuse
  • Consolidation synergies
  • Environmental remediation
  • Workout scenarios including bankruptcy, foreclosure or recapitalization

Senior Debt
Income Fund

Compelling quarterly cash distributions to investors from an open-end fund comprised of a short duration loan portfolio with prudent credit metrics and diversified across traditional middle-market property types, top 50 U.S. markets, and qualified borrowers.

  • A: Flagship Value Add / Opportunity Fund
  • B: Senior Debt
    Income Fund
  • C: Build-to-Core
    Multifamily Fund
  • D: SMAs & Special
    Situations
BACK TO INVESTMENT VEHICLES

Overview

  • Senior loan originations of $10MM to $100MM +
  • Core, core-plus and value-add property level business plans
  • Office, industrial, multifamily, retail, hotel and other rentable property types
  • 60% to 80% LTV
  • Structured as floating-rate, non-recourse financings with three-year initial terms plus extension options
  • Primarily interest only
55 NEW MONTGOMERY
San Francisco, CA
$71,443,000
Office Loan
HILTON
GARDEN INN
Minneapolis, MN $23,500,000 Hotel Loan
PLAZA AT CLAYTON
St. Louis, MO $78,625,000 Office Loan
THE MCKENZIE Dallas, TX $95,000,000 Multifamily Loan
660 BAKER STREET
Los Angeles, CA
$16,100,000
Office Loan
DOUBLETREE AIRPORT
Atlanta, GA
$18,150,000
Hotel Loan

Build-to-Core
Multifamily Fund

A lower volatility strategy focused on investing in a series of customized portfolios of multifamily development properties that provide attractive current returns, long term value appreciation, tax efficiency, and a natural inflation hedge.

  • A: Flagship Value Add / Opportunity Fund
  • B: Senior Debt
    Income Fund
  • C: Build-to-Core
    Multifamily Fund
  • D: SMAs & Special
    Situations
BACK TO INVESTMENT VEHICLES

Overview

Multifamily properties have consistently shown the ability to outperform other asset classes and exhibit resilience through varied economic cycles. Macro demographic and socioeconomic data continues to support positive fundamentals for the national apartment sector. By participating in a risk-mitigated build-to-core process, investors can further benefit from the value arbitrage created by experienced builders and operators.

 

  • Attractive  risk-adjusted returns
  • Favorable  regulatory environment
  • High degree of transparency
  • Liquidity
  • Supportive  demographic outlook
  • Diversified credit risk
  • Reasonable  capital reinvestment
  • Strong operating margins
  • Efficient cost of capital

SMAs & Special
Situations

A tailored collection of discretionary and non-discretionary investment strategies designed to meet the specific objectives of institutional investors who wish to operate outside commingled fund structures.

  • A: Flagship Value Add / Opportunity Fund
  • B: Senior Debt
    Income Fund
  • C: Build-to-Core
    Multifamily Fund
  • D: SMAs & Special
    Situations
BACK TO INVESTMENT VEHICLES

Overview

Since our inception, CrossHarbor has worked collaboratively with a variety of institutions to hand craft and implement investment strategies that meet their unique parameters and corporate mandates. The customization afforded by Separately Managed Accounts can facilitate risk/return, property type, geographic, liquidity, operating control, tax, and other important objectives of an investor. CrossHarbor’s long track record and broad set of core competencies allows it to serve investors as a trusted and effective partner for these initiatives.

AMAZON

  • Separately Managed Account
  • Core Equity Investment
  • Industrial
  • Southwest Region US

CORSAIR

  • Separately Managed Account
  • Core Plus Equity Investment
  • Multifamily
  • Northeast Region US

MONTANA RESORTS

  • Special Situations
  • Long-Dated Equity Investments
  • Hospitality, Residential, Multifamily, Commercial
  • Northwest Region US

Our Team Leads By Experience

CrossHarbor seeks to attract and retain individuals who have demonstrated an exceptional ability to source, analyze, and proactively manage real estate investments. The average investment career for the firm’s senior managers exceeds 33 years and includes the successful navigation of numerous economic and market cycles.

MEET THE TEAM

Contact Info

BOSTON

One Boston Place
Suite 2300
Boston, MA 02108
617.624.8300

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CHICAGO

444 W. Lake Street
Suite 4440
Chicago, IL 60606
312.535.4860

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LOS ANGELES

520 Newport Center Drive
Suite 400
Newport Beach, CA 92660
949.438.2060

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