Highline Real Estate Capital Launches Fund With Projected $350 Million In Purchasing Power

A Miami-based real estate investment and advisory firm led by distressed real estate experts David Moret, Matt Papunen and David Milgram is gearing up to capitalize on upcoming acquisition opportunities throughout the Southeast U.S. The firm, Highline Real Estate Capital, launched a value-add real estate fund with a projected total purchasing power of $350 million.

Highline just completed the first closing for the new fund – Highline Real Estate Fund 1, LP. The fund will be comprised of up to $75 million in discretional capital commitments, $100 million in joint venture commitments and $175 million of debt financing.   

Through the fund, Highline will pursue value-add and distressed office, retail, multifamily and industrial acquisition opportunities in the form of direct investments, joint ventures and rescue capital provided to existing property owners. 

“We have seen dramatic changes in the capital markets since the Federal Reserve commenced its rate-hike cycle, which is creating significant dislocation in the real estate market,” Moret said. “The Southeast region is in a unique environment where operating fundamentals remain reasonably strong, but the restricted debt landscape, asset value declines and wave of loan maturities are poised to cause distress.” 

Since its 2016 formation, Highline has acquired, enhanced and successfully exited from numerous commercial real estate investments with a 2.67x average equity multiple for its investors. Its current portfolio includes office, retail and multifamily assets throughout the Southeast.

The executive leadership of Highline has substantial experience identifying unique opportunities in all market cycles. Moret spent 20 years at CREC as a Partner and head of the firm’s Acquisition and Investment Group. He was involved in more than $1 billion worth of commercial real estate investments and served as an advisor and court-appointed receiver on a wide range of retail, office, hospitality and residential projects totaling more than 2 million square feet. 

Papunen has a lengthy history with real estate funds and distressed acquisitions. Prior to joining the firm, Papunen was a Managing Director with wholly owned Lennar subsidiary Rialto Capital Management. While there, he led acquisitions across a wide array of strategies for three funds and was involved in the acquisition and disposition of loans and distressed assets from the FDIC, domestic and international banks. 

“We are in the early stages of what we expect to be an extraordinary opportunity to acquire high-quality, performing assets at extremely attractive prices,” Papunen said. “Seizing this opportunity requires fresh capital and the expertise to allocate it strategically. Our fund is in a prime position to move quickly on such acquisitions.”  

Milgram primarily focuses on retail opportunities, where he has extensive experience investing throughout the Southeast U.S. as both a private investor and in fund settings. He formerly served as a Vice President for the Sterling Organization.