Former Kimco CEO and Orangewood Start Real Estate Finance Firmby
David Henry teaming with Goldfarb's firm on Peaceable Street
Company will invest equity in deals of up to $100 million
David Henry, former chief executive officer of Kimco Realty Corp., and Alan Goldfarb’s Orangewood Partners said they started a firm to invest in real estate projects outside the scope of more traditional lenders.
The company, Peaceable Street Capital, is backing transactions of as much as $100 million, which typically are too small for most big banks and Wall Street lenders. The firm said it has already completed two deals, financing part of an apartment building in San Antonio, Texas, and a self-storage company.
Peaceable Street, based in Philadelphia, is seeking to invest preferred equity in properties including apartment and office buildings, self-storage facilities, mobile-home parks and hotels. The company said it sees an opportunity to fill a gap in financing small and mid-sized deals created by regulatory restrictions and a volatile market for commercial real estate.
“The retreat of banks and the changing financial system has created a massive void,” Goldfarb said in an interview. He was a managing director at Senator Investment Group LP and principal at Carlyle Group LP before founding New York-based investment firm Orangewood last year.
Henry said the firm’s strategy is to stay under the radar of the biggest players by backing smaller projects and less-typical commercial projects such as mobile-home parks, nursing homes and parking garages.
Before joining Kimco, Henry was chief investment officer at GE Capital Real Estate, part of General Electric Co. He is leading Peaceable Street with Fred Kurz, who worked with him at Kimco as general manager of preferred-equity investments.