High Rise began successfully managing value-oriented long/short real estate securities hedge funds in 2001. While the expertise of the firm’s principals spanned numerous geographies and property types, the liquid nature of their portfolios specifically prohibited investing directly in real estate. However, in the early part of 2010, High Rise recognized an emerging opportunity to acquire financially distressed, but otherwise sound, real estate at compelling prices, which they were not equipped to fully take advantage of on their own.
High Rise then teamed up with Brian R. Carr, whom they had known for more than half a decade, to establish HighBrook Investors as a new, independent, legacy-asset-free firm in order to capitalize on this emerging opportunity. Mr. Carr is the Managing Partner of HighBrook Investors, utilizing not only his broad and diverse investment experience in private real estate, but also his track record of building teams and successfully investing in new markets. Mr. Carr has experience in investments in all the major property types, in many different geographies. He has extensive experience in transactions that are recapitalizations of distressed capital structures, including the acquisition and work-out of nonperforming real estate loans. Mr. O’Connor brings his relationships and knowledge of public real estate companies, which has become a substantial competitive advantage for HighBrook Investors in sourcing opportunities. In January of 2011, in an independent decision made while at their all-time high, and following a decade of outperforming all relevant indices, High Rise announced its intention to liquidate its real estate securities hedge funds and return all outside capital ($1.5 billion) to its limited partners. Soon thereafter, recognizing the increasing attractiveness of real estate opportunities in the private market, Mr. O’Connor decided to devote the majority of his business time to HighBrook Investors. HighBrook Investors has developed a robust pipeline of potential future acquisitions by mining their vast network of relationships.
HighBrook launched its first investment fund, HighBrook Income Property Fund, LP ("Fund I") in October of 2011. Fund I became the exclusive vehicle for which HighBrook invests in the income producing property strategy. In October, 2012, Fund I had its Final Closing with commitments totaling $230 million, generating more than a half of a billion dollars in purchasing power.
HighBrook launched HighBrook Income Property Fund II, LP (“Fund II”) in March 2014. Fund II is the successor to Fund I, as Fund I completed making investments in 2015. In March, 2015, Fund II had its Final Closing with capital commitments in excess of $308 million.