New Real Estate Company Provides JV and GP Co-Invest Equity

Newport Beach, California-based Isles Ranch Partners has rebranded as RanchHarbor. The new company will provide joint venture equity and general partner co-invest equity for real estate investments between $2 million and $15 million. The company will invest in both commercial and multifamily assets in the Western US, and it is also capable of providing asset management, receivership and capital advisory services to its clients.

In the current economic environment, investors are focused on small-balance transactions. RanchHarbor is designed to serve this demand, specifically for institutional investors, private investors and asset owners.

The new firm will focus on principal investing, asset management, RanchHarbor receivers and advisory services. Through the principal investment platform, RanchHarbor will focus on value-add and opportunistic investments with joint ventures. Most joint venture partners will be with local operating partners. For asset management, RanchHarbor will partner with stakeholders during complicated transactions, development hurdles and financial restructurings. The RanchHarbor Receivers platform will allow the company to serve as a court-appointed receiver, which includes conducting a wide range of workout and value-add services in the distressed asset market. Lastly, RH Advisors, the firm’s advisory services platform, will provide both debt and equity solutions to clients.

This year already, RH Advisors has closed transactions in Arizona, including the $39.4 million senior loan for the development of Acero Glendale, a class-A garden-style multifamily property, and the firm invested in a 141-unit apartment complex in Phoenix. Additionally, the firm is in the process of placing $50 million in additional equity opportunities.

Former Isles Ranch Partners CEO Tom Orradre along with Adam Deermount, Steve Sims and John Meek will lead RanchHarbor. Together, the firm’s leadership has completed $3 billion of real estate acquisitions, $12 billion of asset management and workout activity, and they have advised on the placement of over $1.3 billion in real estate capital. Isles Ranch Partners has invested more than $620 billion in equity capital, focusing on distressed residential land development and homebuilding projects. Since its inception in 2012, the firm has generated $1.7 billion in revenue.

Joint venture activity have been growing in popularity since 2017 due to stricter regulations on loan underwriting capital. Equity partnerships are an alternative to the shadow banking market, which has also grown in popularity in light on stricter capital underwriting guidelines. The pandemic and economic dislocation has created a tight capital market, creating more demand for equity partnerships.