Noah Greenbaum
Haxall Point Partners, a spin-off of Shockoe Bottom-based Canal Capital Management, recently capped off its first real estate investment fund, raising $10 million from about 40 investors.
The money from the fund, Haxall Point Income Fund I, has already been fully disbursed in 10 deals involving real estate of all sorts, mostly around the mid-Atlantic and Southeast.
Its deals have included investments in a mixed-used development in Georgia, a town house development in West Virginia, a mobile home park in Indiana, and locally, a portfolio of Innsbrook office buildings owned by Lingerfelt Cos.
Haxall Point Partners was created by Canal Capital partners Noah Greenbaum and Neil Gilliss as a way to offer Canal’s clients options outside of traditional investments.
“We’ve always been big believers in alternatives for our clients, and we like real estate as an asset class moving forward, especially as returns on bonds and equity are going to be muted,” Greenbaum said.
Canal Capital, which manages about $200 million in assets, had previously invested in outside real estate instruments, “but the fees were high and the structure wasn’t necessarily right,” Greenbaum said.
Craig Truitt
With Haxall Point Partners, the group looks to co-invest with experienced owners and operators of real estate and either take an ownership stakes in properties or act as an extra equity partner to a buyer.
In creating their own fund, Greenbaum says they can keep the fees lower by cutting layers from outside parties. Canal Capital manages the fund for Haxall Point and receives a flat fee for its work.
Greenbaum and Gilliss started Canal Capital in 2011. They began raising money for the Haxall fund in late 2013 with an original goal of $25 million. They decided to cap it at $10 million last October and had the money fully invested by December.
To help manage Haxall Point Partners, Gilliss and Greenbaum approached Craig Truitt, formerly of Richmond-based Private Advisors.
“We knew we were pretty green in this space,” Greenbaum said of himself and Gilliss. “We’ve never put our own fund together.”
Truitt had just sold his interest in Private Advisors, a downtown firm that raises huge pools of money from institutional investors, endowments, pension funds, and decided to buy into Canal Capital as a partner.
Truitt has since helped steer the fund toward completion. He said the properties they’re interested in are in smaller markets and in niche types of real estate, often off-market.
Neil Gilliss
“Smaller opportunities are driven by the human condition,” Truitt said. “We’re not in New York, Chicago, Boston or San Francisco. Those are big cities to stay away from because of the extreme valuations both on the upside and downside.”
All 40 Fund I investors were accredited, and about 80 percent were existing Canal Capital clients. The minimum investment was $250,000. Greenbaum and Gillis personally put up about 15 percent of the first fund’s money.
They wouldn’t comment on what sorts of returns investors can expect from Fund I but said that they’ll look to exit most of the investments after about seven years.
As for the next step for Haxall Point Partners, Greenbaum said only that they are beginning to formulate a plan for a potential second fund.
Noah Greenbaum
Haxall Point Partners, a spin-off of Shockoe Bottom-based Canal Capital Management, recently capped off its first real estate investment fund, raising $10 million from about 40 investors.
The money from the fund, Haxall Point Income Fund I, has already been fully disbursed in 10 deals involving real estate of all sorts, mostly around the mid-Atlantic and Southeast.
Its deals have included investments in a mixed-used development in Georgia, a town house development in West Virginia, a mobile home park in Indiana, and locally, a portfolio of Innsbrook office buildings owned by Lingerfelt Cos.
Haxall Point Partners was created by Canal Capital partners Noah Greenbaum and Neil Gilliss as a way to offer Canal’s clients options outside of traditional investments.
“We’ve always been big believers in alternatives for our clients, and we like real estate as an asset class moving forward, especially as returns on bonds and equity are going to be muted,” Greenbaum said.
Canal Capital, which manages about $200 million in assets, had previously invested in outside real estate instruments, “but the fees were high and the structure wasn’t necessarily right,” Greenbaum said.
Craig Truitt
With Haxall Point Partners, the group looks to co-invest with experienced owners and operators of real estate and either take an ownership stakes in properties or act as an extra equity partner to a buyer.
In creating their own fund, Greenbaum says they can keep the fees lower by cutting layers from outside parties. Canal Capital manages the fund for Haxall Point and receives a flat fee for its work.
Greenbaum and Gilliss started Canal Capital in 2011. They began raising money for the Haxall fund in late 2013 with an original goal of $25 million. They decided to cap it at $10 million last October and had the money fully invested by December.
To help manage Haxall Point Partners, Gilliss and Greenbaum approached Craig Truitt, formerly of Richmond-based Private Advisors.
“We knew we were pretty green in this space,” Greenbaum said of himself and Gilliss. “We’ve never put our own fund together.”
Truitt had just sold his interest in Private Advisors, a downtown firm that raises huge pools of money from institutional investors, endowments, pension funds, and decided to buy into Canal Capital as a partner.
Truitt has since helped steer the fund toward completion. He said the properties they’re interested in are in smaller markets and in niche types of real estate, often off-market.
Neil Gilliss
“Smaller opportunities are driven by the human condition,” Truitt said. “We’re not in New York, Chicago, Boston or San Francisco. Those are big cities to stay away from because of the extreme valuations both on the upside and downside.”
All 40 Fund I investors were accredited, and about 80 percent were existing Canal Capital clients. The minimum investment was $250,000. Greenbaum and Gillis personally put up about 15 percent of the first fund’s money.
They wouldn’t comment on what sorts of returns investors can expect from Fund I but said that they’ll look to exit most of the investments after about seven years.
As for the next step for Haxall Point Partners, Greenbaum said only that they are beginning to formulate a plan for a potential second fund.