The Hartman Companies, a Texas-based commercial real estate sponsor, has launched The Hartman Capital Fund, a private placement fund, to provide short-term bridge-financing to the firm’s affiliated Delaware statutory trust offerings. The fund’s initial offering amount is $12.5 million, with an option to increase up to $25 million.
Hartman said that the fund will allow the company “to deliver more 1031 exchange opportunities to the fast-growing 1031 exchange marketplace, while providing an 8 percent annualized return to its investors and the return of 100 percent of their initial investment once the 1031 exchange DST offerings are fully subscribed.” The Hartman Capital Fund will be the company’s 28th offering.
Hartman has fully subscribed three previous DST offerings, ranging in size from $4.3 million to $8.8 million. In August 2021, The DI Wire reported that the company fully subscribed Hartman Retail III DST after raising roughly $8 million from accredited investors to purchase Colony Retail Shopping Center, a net leased retail center in the Dallas Forth Worth Metroplex that is 100 percent leased to tenants under triple-net leases.
Hartman noted that its new capital fund will allow it to launch similar DST offerings in the future.
“We are delighted to announce the launch of The Hartman Capital Fund. We believe that this new high-quality and timely offering will allow us to retain our standing as a top performing real estate sponsor while creating value and exceptional returns for our investors,” said Al Hartman, chairman and chief executive officer.
Since 1983, Hartman has been acquiring and managing commercial real estate investments on behalf of individual investors, focusing on office, retail, light industrial and warehouse properties located in Texas. Hartman and its affiliated entities (including founder, Al Hartman) have sponsored 27 programs and acquired interests in more than 90 real assets totaling over $805 million.