TerraCap Management caps real estate investment fund

Naples-based TerraCap Management Corp. has closed its first real estate fund, TerraCap Partners LP. The private placement fund was oversubscribed by 5%.

The fund has purchased and will use its remaining proceeds to target real estate investments throughout Southwest Florida. Its limited partners are accredited investors and high net worth individuals located in the United States and Europe.

“We are very pleased to have been oversubscribed in this difficult economic environment,” W. Stephen Hagenbuckle, president of TerraCap Management Corp., says in a press release. “Given the continued deterioration in the economy and the lagging nature of the real estate market, we will remain disciplined and cautious in deploying this capital.”

Although TerraCap has acquired primarily residential and mixed-use properties to date, it anticipates a wave of defaults on commercial real estate loans as a result of the inability of borrowers to refinance at maturity and at the expiration of current forbearance agreements.

TerraCap Management Corp. was assisted in its fundraising by New York City-based Scarsdale Equities LLC and Naples-based First Florida Securities Inc.