New Launch to Sponsor RE Funds

SWH Funding Corp., Hackensack, N.J., and New York City-based Newbridge Realty Capital have launched Hudson Realty Capital, which will sponsor two $25 million real estate funds.The first, Hudson Debt Fund I, will focus on the origination and acquisition of high-yielding real-estate-related debt instruments. The second, Hudson Opportunity Fund I, will invest in real estate and acquire underperforming mortgage loans. "Our investment strategy is to target underserved markets that offer superior yield-to-risk returns, in the range of 12% to 18%," said Sanford S. Herrick, a managing director of HRC. The Hudson Debt Fund is expected to have approximately $100 million of origination capability when combined with HRC's existing lines of credit, and the Hudson Opportunity Fund is expected to have $25 million of equity available for both large and small "opportunistic investments." Combined with additional borrowing capacity, the latter fund is also expected to have acquisition capability of over $75 million, the companies said.