Arden Group launches first debt vehicle

The fund will back value-add real estate purchases.

The Arden Group is seeking $150 million for its debut real estate debt fund after hiring a head of originations last fall.

The Philadelphia-based real estate investment firm has raised $34.92 million so far from 104 investors, according to a US Securities and Exchange Commission regulatory filing. The vehicle will finance value-add real estate projects, according to Arden’s website. Arden hired Douglas Harmon away from A10 capital to lead its originations for the new credit arm, a position he started in September, according to his LinkedIn profile.

Founded in 1989 as a third-party asset management firm, Arden launched its credit business last year, four years after it launched its real estate private equity business, for which it has raised two funds.

The firm raised Arden Real Estate Partners I in 2012, with a $75 million target, and Arden Real Estate Partners II in 2014, with a $250 million target, according to SEC documents. The former garnered a total of $66 million in commitments, while the latter raised $188 million, according to the firm’s website.