Taconic Capital Advisors and HEI Hotels & Resorts Partner to Acquire Westchester Marriott From Ares Commercial Real Estate Corporation
March 11 2022 - 6:30AM
Business Wire
New Owners to Launch Major Repositioning of
444-Key Property in Tarrytown, NY
Ares Commercial Real Estate Corporation to
Provide Financing
Taconic Capital Advisors (“Taconic”), HEI Hotels & Resorts
(“HEI”) and Ares Commercial Real Estate Corporation (“ACRE”)
announced today that Taconic and HEI have partnered to acquire the
Westchester Marriott, a 444-key hotel in Tarrytown, NY, from ACRE
for $40 million. As part of the transaction, ACRE has elected to
provide a financing facility in support of the business plan for
the hotel property.
The 15-acre property, located at 670 White Plains Road in
Tarrytown, offers 21 event rooms for a total of 26,700 square feet
of conference and meeting space, including a 9,000-square foot
ballroom with a total capacity of 1,100 people. The property
includes a Ruth’s Chris Steak House, Cooper Mill American
restaurant, a gift shop, fitness center, spa and laundry.
The hotel will continue to operate under the Marriott flag and
will be managed by HEI Hotels & Resorts. Taconic and HEI will
execute a comprehensive $30-million case and soft goods renovation
focused on all areas of the hotel. The Westchester market has lost
nearly 1,200 directly competitive hotel rooms during the last
several years, including more than 90,000 square feet of meeting
space.
“The Westchester Marriott provides a unique opportunity in a
time of continued and permanent market supply reduction,” said
Andrew Lam, director with Taconic. “A property of this caliber,
with a transformative renovation and new best-in-class management,
is positioned to excel.”
“When sourcing this deal, HEI recognized the opportunity to
execute a business plan that will maximize real estate value by
relying on the company’s proven track record for successful
repositioning,” said HEI CEO Anthony Rutledge. “We are excited to
team with Taconic as we reenergize this asset.”
This is Taconic’s first acquisition with HEI and marks the
company’s 12th hotel transaction, encompassing 17 properties and
3,700 keys, in the past year.
HEI Hotels & Resorts is one of the nation’s leading
privately held hotel investment and third-party management
companies, with a portfolio of 90-plus properties in the United
States. The company’s operating platform is built exclusively for
institutional hotel assets in key urban, super-suburban, and resort
locations.
“We are very pleased to enter into this agreement in support of
Taconic’s and HEI’s business plans for the Westchester Marriott,”
said Bryan Donohoe, Chief Executive Officer of ACRE. “We believe
the collaboration of Taconic and HEI and their demonstrated
capabilities will enable the property to thrive in the evolving
Westchester market.”
About Taconic Capital Advisors
Founded in 1999, Taconic is a global institutional investment
firm that pursues an event-driven, multi-strategy investment
approach. The company has offices in New York, London and Hong Kong
with a range of investment capabilities, management talent and
geographic reach to capitalize on the changing opportunity set for
investors.
About HEI Hotels & Resorts
Founded in 1985, HEI is an established expert on Luxury,
Upper-Upscale, and Upscale hotels in Urban, Super-Suburban, and
destination Resort locations across branded, soft-branded and
independent lifestyle categories. The company’s portfolio currently
includes 90-plus assets, representing more than 28,000 keys across
approximately 30 different capital partners. HEI continues to be
one of the most active investors in, and managers of,
institutional-quality hotel assets across the US.
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation (NYSE: ACRE) is a
specialty finance company primarily engaged in originating and
investing in commercial real estate loans and related investments.
Through its national direct origination platform, the Company
provides a broad offering of flexible and reliable financing
solutions for commercial real estate owners and operators. The
Company originates senior mortgage loans, as well as subordinate
financings, mezzanine debt and preferred equity, with an emphasis
on providing value added financing on a variety of properties
located in liquid markets across the United States. Ares Commercial
Real Estate Corporation elected and qualified to be taxed as a real
estate investment trust and is externally managed by a subsidiary
of Ares Management Corporation. For more information, please visit
www.arescre.com. The contents of such website are not, and should
not be deemed to be, incorporated by reference herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20220311005075/en/
For Taconic: Shea Communications LLC George Shea 917
584-0988 gshea@sheacommunications.com For ACRE: Investors
Carl Drake or Veronica Mendiola Mayer +1 888-818-5298
iracre@aresmgmt.com Media Jacob Silber +1 212-301-0376
media@aresmgmt.com
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