Shockoe firm raising $25M real estate fund

Haxall Point and Canal Capital’s office in Shockoe Bottom. (Michael Schwartz)

For the third time in three years, an arm of a Cary Street-based wealth management firm is pooling investor money to buy into real estate – this time targeting “manufactured housing.”

Haxall Point Partners, an offshoot of Canal Capital Management in Shockoe Bottom, recently began raising a $25 million fund.

Dubbed the “Haxall Point Manufactured Housing Opportunity Fund,” the effort had brought in $4 million since beginning in October, according to a December SEC filing. It requires a minimum buy-in of $250,000 from investors.

Should the company hit its mark, it would be the third eight-figure fund brought to completion since 2016.

Led by Canal Capital’s Neil Gilliss and Noah Greenbaum, who declined to comment on this latest fund, Haxall Point Partners’ first pool raised $10 million from about 40 investors in a round that closed in early 2016.

Its second fund was capped off last year after raising $26.5 million from 65 investors.

Those first two rounds invested in a mixed-used development in Georgia, a townhouse development in West Virginia, a portfolio of Innsbrook office buildings owned by Lingerfelt Cos. and a mobile home park in Indiana.

Haxall historically has looked to buy into properties in secondary and tertiary markets, referring to those smaller than and similar in size to the Richmond market, mostly around the Mid-Atlantic and Southeast regions.

The firm aims to co-invest with real estate owners and operators on commercial properties and looks to either take ownership stakes or be an extra equity partner to a buyer.

This latest fund looks to be targeting a further investment into mobile home parks, which follows a trend among local firms and investors of targeting such properties around the country. That includes Capital Square 1031, a company based in Innsbrook that sold off three trailer parks in Indiana and Ohio in the fall.