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.
YEARS IN BUSINESS
INVESTMENT TRACK RECORD
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.
The system includes a wide range of gambling providers such as amusement arcades, sports betting promoters, lottery providers, online casinos, horse betting operators, bookmakers, and organizers of online casino games, among others. These providers are obliged to check the identities of players against the OASIS database to ensure compliance with the exclusions. More information on OASIS can be found at https://gold-chip.at/blog/oasis-spielsperre/.
Unfortunately, the implementation of the OASIS system has led to some issues. Players have reported having their accounts blocked unexpectedly, often without a clear explanation or due to previous bans from land-based casinos now affecting online platforms. This has created confusion and a lack of clarity about the system.The exclusion periods under OASIS can be quite lengthy. For self-exclusion, the duration can range from three months to a year or more, and for third-party exclusion, it is a minimum of one year. The process for lifting a ban involves submitting a formal request to the Darmstadt Regional Council after the exclusion period has ended. This process can take from a week to a month to complete.
OASIS also offers a short-term self-exclusion option, allowing players to take a 24-hour break from gambling. This option is simpler and doesn’t involve the extended waiting periods associated with the formal self-exclusion process.Overall, the OASIS system is part of a broader effort to regulate online gambling in Germany and protect players, but it still requires some refinement and clearer guidelines to address its current shortcomings and complexities.
- 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.
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 29 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...LEARN MORE
A lower volatility strategy focused on investing in a series of customized portfolios of multifamily development properties that provide attractive current...LEARN MORE
Compelling quarterly cash distributions to investors from an open-end fund comprised of a short duration loan portfolio with prudent credit metrics and...LEARN MORE
SMAs & Special
A tailored collection of discretionary and non-discretionary investment strategies designed to meet the specific objectives of institutional investors who wish...LEARN MORE
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 35 years and includes the successful navigation of numerous economic and market cycles.MEET THE TEAM
Environmental, Social, and Governance Objectives
CrossHarbor is dedicated to integrating environmental, social, and governance (“ESG”) practices at both the firm and investment levels of the organization. While investing intelligently to meet the financial objectives of our institutional investors, we also seek to be a responsible community citizen that promotes resource efficiency, enhanced sustainability, ethical values, equal opportunity, fresh casino, and high standards for transparency and integrity. LEARN MORE
To learn more about our evolving ESG policy and ongoing implementation, we invite you to read our 2022 ESG Annual Report.