The flagship Arden Real Estate Partners Funds (AREP) maintain a middle market value-add and thematic strategy that invests in high quality commercial real estate assets in top US MSA’s and dynamic growth markets.
Exclusive focus on the following targeted sectors where Arden expertise provides a distinct advantage AND that offer attractive value in order to achieve targeted risk-adjusted returns:
- Last mile infill industrial focused on both multi-tenant and industrial service facilities (ISF) including outdoor storage (IOS):
- Compelling supply/demand dynamics.
- Short weight average lease term (WALT) – typically 2-4 years – provides positive inflation sensitivity.
- Highly fragmented market with limited institutional sponsorship provides considerable opportunity to add value through aggregation strategies.
- Diversified tenant base mitigates credit risk.
- Moderate capital expenditures business plans.
- Operationally intensive creating barriers to entry for scale portfolios.
- High quality hospitality:
- Premier institutional quality properties in high barrier to entry major markets
- Positive cash flow business plans.
- Potential to add value via operating expertise and brand change.
- Trophy office
- Highest quality buildings in high barrier to entry major markets.
- Leased to pristine quality tenants.
- High occupancyand generally predictable cash flows.
Investment strategy driven by basis driven buying and addressing capital, operational, and physical deficiencies. :
Buy It – Asset Pricing Strategy
- Core quality assets in core locations
- Distressed situations
- Fragmented non-institutional ownership
- Significant discount to replacement cost with in-place positive cash flow
Fix It – Clear & Compelling Value-Add & Aggregation Programs:
- Address capital deficiencies
- Resolve operational deficiencies
- Correct physical deficiencies
- More favorable capital markets execution through aggregation
Sell It – Downside Protection & Risk Mitigation:
- IRR & Equity Multiple sensitivity analysis
- Short business plans to reduce risk and accelerate return of capital
- Sell performing assets or portfolios at optimal times
- Maximize investor returns via scale portfolio premiums
Reinvesting eligible capital gains from stocks, real estate, businesses and other assets into long-term investments located in Qualified Opportunity Zones through a Qualified Opportunity Fund vehicle can provide significant tax benefits to investors. Arden is a leading fund manager in the space having closed Arden Qualified Opportunity Zone Fund, L.P. in 2022 at $356M and employs a strategy focused on the following:
- High quality development projects in high growth markets with demonstrated strong fundamentals where we can partner with premier developers.
- Asset classes include multi-family, student housing and life science sectors.
- Underwrite to attractive target returns not including potential tax benefits.
- Potential for shorter J-Curve due to innovative joint venture fund structure.
- Current projects located in Nashville, Tampa, New York City, Salt Lake City, Miami, Tallahassee, and Jersey City, NJ.
The Arden Credit Funds Strategy (“ACF”) originates debt investments secured by commercial real estate across the U.S.
- Invests in first mortgage loans, B-notes, mezzanine loans, and preferred equity
- Focuses on top 35 U.S. MSA’s and select secondary markets
- Asset classes include Office, Hotel, Multifamily, Retail, Industrial and Residential Condominiums (in select markets)
- Provides financing for ground-up construction; transitional assets and stabilized assets
- Seeks to utilize Arden Group’s equity underwriting expertise to effectively underwrite debt investments
RXR ARDEN Digital Ventures is a venture capital firm focused on real estate tech.
This venture empowers founders who improve our communities through digitizing the built environment.