Development Equity

At a time when many do not have a tolerance for investing in a ground-up retail venture, Hutensky Capital Partners is funding quality projects. New development proposals that generally meet all of the fund investment objectives will be considered.

HCP generally has two development arrangements:

  • Fund a share of pursuit costs for prospective development, with an option to provide project equity.
  • Fund some or all of the equity needed for a project ready to break ground.

Projects that receive significant equity funding generally have the following characteristics:

  • Land Control: Land is controlled via option, land contract or ownership.
  • Tenant Commitments: Leases or signed letters of intent from tenants to justify at least Phase I development.
  • Costs: Project cost numbers that have been bid out or are subject to contractor contract.
  • Pro Forma Yield: Commensurate with risk.

What HCP Brings to the Deal

Because we have an extensive history in retail development, HCP understands the complexities of ground-up development and can back quality projects with strong fundamentals. We often see opportunity where others see risk.

HCP’s team has extensive relationships with retailers and lenders that could provide further value to a development project. Few capital providers can offer these resources.

Creativity and flexibility comprise the foundation of our deals. We have funded all-cash transactions and provided capital before closing on land. Our funds are 100 percent discretionary and our internal approval process is flat, demonstrating that HCP can often support quality deals in ways that others cannot.