Ares Management, SMW Hospitality & Trinity Investments Sell Ritz-Carlton, Kapalua in Maui
October 17 2018 - 8:30AM
Business Wire
A joint venture among funds managed by the Real Estate Group of
Ares Management, L.P. (NYSE:ARES), SMW Hospitality LLC (a joint
venture between affiliates of Square Mile Capital Management LLC
(“Square Mile Capital”) and Wafra Inc.), and Trinity Real Estate
Investments LLC, today announced the sale of The Ritz-Carlton,
Kapalua in Maui, Hawaii, to Blackstone Real Estate Partners, an
affiliate of Blackstone Group (NYSE:BX).
The joint venture acquired The Ritz-Carlton, Kapalua, a AAA Five
Diamond, oceanfront property located on 49 acres of Maui’s lush
northwest shore, in 2016. Since then, the joint venture leveraged
its hospitality and financial expertise to unlock significant
embedded value at the property, including by implementing a capital
improvement plan to renovate the hotel’s common areas and guest
rooms, further enhancing the guest experience.
“The Ritz-Carlton, Kapalua was acquired at a compelling basis
and had a clear redevelopment plan that was a strong fit for our
opportunistic investment strategy,” said Andrew Holm, Partner in
the Ares Real Estate Group. “We are proud of the work we did with
our partners to further improve what was already an iconic Maui
property.”
Senior Managing Director Nolan Hecht of Square Mile Capital
said, “Consistent with Square Mile Capital’s core investment style,
we were an early investor of institutional capital on Maui,
anticipating a rapid acceleration of tourism that would benefit the
local hotel market. Along with Ares, we saw an opportunity to buy
this particular property at a discount two years ago and reposition
it very profitably. Trinity proved to be a terrific local operating
partner, and all together we executed the capital improvement plan
successfully.”
“We believe the outcome of this transaction reflects the
significant value we were able to create over the hold period,”
said Sean Hehir, Managing Partner of Trinity Investments. “The deal
is a perfect example of how we leverage our intimate local market
knowledge and proven platform to generate compelling risk-adjusted
returns on invested capital.”
The 297-key hotel, which includes 107 condos located within a
dedicated wing known as the Residences, is part of the 23,000-acre
master planned Kapalua resort on Maui, home to the celebrated
Kapalua Wine and Food Festival and the PGA Tour’s Tournament of
Champions event. The resort is renowned for its world-class golf
courses, an award-winning tennis facility, golden sand beaches and
myriad restaurants and shops.
About Ares Management, L.P.Ares Management, L.P. is a
publicly traded, leading global alternative asset manager with
approximately $121.4 billion of assets under management as of June
30, 2018 and 18 offices in the United States, Europe, Asia and
Australia. Since its inception in 1997, Ares has adhered to a
disciplined investment philosophy that focuses on delivering strong
risk-adjusted investment returns throughout market cycles. Ares
believes each of its three distinct but complementary investment
groups in Credit, Private Equity and Real Estate is a market leader
based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits
from being part of the greater whole. For more information, visit
www.aresmgmt.com.
About Square Mile Capital Management, LLCSquare Mile
Capital Management LLC is an integrated institutional real estate
finance and investment management firm based in New York. Square
Mile Capital’s large U.S. footprint, enhanced by the firm's
strategic partnership with USAA Real Estate Company, enables it to
leverage proprietary market insights through a unified sourcing and
investment philosophy that positions the firm to capitalize upon
opportunities through all phases of the commercial real estate
cycle. The firm’s opportunistic investment platform takes a value
oriented approach to its activities, with an emphasis on
opportunities to acquire or capitalize real estate assets or
enterprises that are undervalued, complex or undercapitalized.
Square Mile Capital's commercial real estate debt platform provides
customized capital solutions for real estate owners and developers
throughout the United States. For more information, visit
www.squaremilecapital.com.
About Trinity Real Estate Investments LLCTrinity Real
Estate Investments LLC is a private real estate investment firm
with a 20-year history of generating value-added returns. Since its
inception, Trinity Investments has consummated more than $4 billion
worth of global real estate transactions in Hawaii, Mexico and
Japan by leveraging its deep institutional knowledge and
longstanding local relationships. With considerable expertise
covering the full spectrum of property investment, development and
value-enhancing asset management, Trinity Investments generates
unique and opportunistic real estate investments in world-class
markets. Based in Honolulu, Hawaii, the firm’s pursuits span an
array of geographic locations and asset types but share the
commonality of being predicated upon best-in-class local
relationships and teams of professionals for sourcing, executing
and realizing investments within each of its target markets. For
more information, visit www.trinityinvestments.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20181017005442/en/
For Ares Management:Media:Mendel CommunicationsBill
Mendel, 212-397-1030bill@mendelcommunications.comorInvestors:Ares
ManagementCarl Drake, 800-340-6597cdrake@aresmgmt.comorPriscila
Roney, 212-808-1185proney@aresmgmt.comorFor Square Mile
Capital:RubensteinRick Matthews,
212-843-8267Rmatthews@rubenstein.comorFor Trinity
Investments:ICRJason Chudoba,
646-277-1249Jason.Chudoba@icrinc.comorMegan Kivlehan,
646-677-1807Megan.Kivlehan@icrinc.com
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