Nighthawk Equity

Nighthawk has been an absolute terrible GP. Their upfront marketing and aggressive approach to raising funds to close deals is their strength, yet where it ends. The investment was supposed to last five years with a 20%+ cash on cash return. They were paying themselves handsomely with a lofty acquisition fee and GP preferential distributions in the form of an asset management fee. After year one, and one LP distribution, the excuses started pouring in with regards to the asset performing poorly, tightening market conditions, bad debt, debt coming due (a steep rate bridge loan was used to buy the asset), bad property managers, etc. Distributions to LPs stopped, but they continued to take an asset management fee. A cap call was made and the slimy salesperson approach was laid on thick -- so much so that most LPs participated to the tune of 22% more cash needed. It was suggested that their acquisition fee be rolled back into the deal to mitigate the cap call, but those suggestions went unanswered. The debt was restructured but the asset still performed poorly and excuses continued. Now, at year three, the property is listed for sale and all LP's investment will be lost. And the bank shorted. Emails to Michael Blank (owner of Nighthawk) go unanswered. He deflects all email responses to his team who give more excuses when questioned. Michael is extremely cold to everyone's concerns and frustration. Nighthawk has already lost a few deals. And now Michael is exiting the multifamily arena and focusing on buying businesses. Apparently when you fail and steal people's money in one vertical, jump to the next one. Ironically, Michael continues to tout himself as a multifamily syndication investing guru with an array of coaching programs.