Distressed asset presents potential upside in one of country's strongest hotel markets
PLYMOUTH MEETING, Pa., Jan. 20, 2016 /PRNewswire/ -- CenterSquare Investment Management, an investment boutique of BNY Mellon, announced today the acquisition of an Anaheim-area hotel property in a joint venture by the CenterSquare Value-Added Fund III. CenterSquare has partnered with Foster Enterprises and leading hotel management firm Interstate Hotels Group to acquire the property.
"This investment presented a unique opportunity to acquire a relatively new hotel property possessing many fundamental attributes that appeal to the demand drivers specific to this market, yet was underperforming as a result of being operated as an independent hotel lacking institutional ownership," said Jeff Reder, Senior Vice President, Private Real Estate for CenterSquare. "The investment was sourced off market and acquired at a compelling basis. We will seek to execute our business plan and stabilize operations, with the goal of generating an attractive return and enhancing long-term value as Disneyland continues to make significant investment in their park, most notably with the planned addition of Star Wars Land."
CenterSquare and its partners will implement an extensive property improvement plan for the hotel, which includes a complete overhaul of all guest rooms and common areas, and the addition of a new pool area. Upon completion of the renovations, the hotel will re-open as a Candlewood Suites, one of the Intercontinental Hotel Group brands. By seeking to provide a high quality product, institutional ownership and management, affiliation with a major hotel brand and proximity to Disneyland, the asset should be positioned to perform favorably in this high demand hotel market.
"This acquisition is an excellent illustration of CenterSquare's investment strategy to drive return by focusing on middle-market transitional assets that offer the potential to achieve greater yields through the execution of traditional value-add strategies," said Todd Briddell, CenterSquare's CEO and Chief Investment Officer. "We believe that the Anaheim property, just blocks away from Disneyland, is very well located real estate with a value-add component in one of the strongest hotel markets in the country. It is the latest addition to CenterSquare's portfolio that leverages deep industry knowledge and relationships to seek to generate attractive potential returns."
ABOUT CENTERSQUARE INVESTMENT MANAGEMENT:
CenterSquare is a global investment manager focused on actively managed real estate and infrastructure strategies. Founded in 1987, it operates as one of the investment boutiques of BNY Mellon Investment Management. CenterSquare manages approximately $6.8 billion of real estate and infrastructure securities through CenterSquare Investment Management, Inc. and approximately $1.3 billion (gross) of debt and private equity real estate investments through CenterSquare Investment Management Holdings, Inc. (together referred to as "CenterSquare"), as of September 30, 2015. It manages investments for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors.
The interests (the "Interests") in the fund referenced herein (the "Fund") have not been approved or disapproved by the U.S. Securities and Exchange Commission (the "SEC") or by the securities regulatory authority of any state or of any other jurisdiction. The Interests have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), the securities laws of any other state or the securities laws of any other jurisdiction, nor is such registration contemplated. The Fund will not be registered as an investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). Consequently, limited partners of the Fund are not afforded the protections of the 1940 Act.
The Interests are offered only to qualified investors who do not require immediate liquidity of the investment. An investment in the Fund does not constitute a complete investment program.
Securities are offered in the U.S. through MBSC Securities Corporation, a registered broker dealer.
Certain information contained herein may be "forward-looking" in nature. Due to various risks and uncertainties, actual events or results, or the actual performance of the funds, may differ materially from those reflected or contemplated in such forward-looking information. As such, undue reliance should not be placed on such information.
ABOUT BNY MELLON INVESTMENT MANAGEMENT
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. MBSC Securities Corporation, and CenterSquare Investment Management, Inc. are wholly-owned subsidiaries of The Bank of New York Mellon Corporation. More information can be found at www.bnymellon.com.
ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
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SOURCE BNY Mellon