A downtown wealth management firm’s real estate investment spinoff has closed out its latest eight-figure fund – and already is putting the money to work.
Haxall Point Partners, an offshoot of Canal Capital Management, last month capped its second pooled investor fund, raising $26.5 million from 65 investors.
Created by Canal Capital founders Noah Greenbaum and Neil Gilliss, Haxall Point Partners aims to co-invest with real estate owners and operators on commercial properties mostly around the Mid-Atlantic and Southeast regions. It looks to either take ownership stakes in properties or be an extra equity partner to a buyer.
Haxall’s first fund, which raised $10 million from about 40 investors in a round that closed in early 2016, invested in a mixed-used development in Georgia, a townhouse development in West Virginia, a mobile home park in Indiana, and locally, a portfolio of Innsbrook office buildings owned by Lingerfelt Cos.
Greenbaum said this second fund will follow a similar strategy of buying into properties in “secondary and tertiary markets,” referring to those smaller than and similar in size to the Richmond market.
He said most of the money from the second fund – dubbed Haxall Point Income Fund II – has already been invested, though Greenbaum did not comment on specific properties. He said the fund is eyeing office buildings, trailer parks, student housing and hotels.
While Gilliss and Greenbaum created Haxall Point Partners as a way to offer Canal’s clients options outside of traditional investments, Greenbaum said this latest fund attracted interest from both existing clients as well as those outside of its wealth management client base.
Greenbaum said they are considering future funds, but are patiently plotting things out.
“There’s definitely an appetite for income and real assets,” Greenbaum said.
On the wealth-management side, Canal Capital has grown to about $375 million in client assets under management, Greenbaum said. The firm has nine employees working out of its Richmond office.
Canal Capital also has been working to grow its business advisory practice, which last year helped facilitate a local family’s purchase of a historic hotel in Charlottesville.