Morris Brown College sees new $30M hotel as signs of its own rebirth bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.
Larry Korman and Joe Lubeck (iStock)
A multifamily investment firm and a luxury hotel residences company have partnered to launch a $500 million hotel investment fund, seeking to take advantage of opportunities created by the pandemic.
Electra America Hospitality Group, a joint venture between Electra America and AKA, plans to focus on properties in New York City, Miami, Los Angeles, Washington D.C., Toronto and London, said Russ Urban, CEO of the new partnership. The joint venture recently closed on $100 million in capital.
“Anybody that’s selling a hotel in this environment today clearly is doing it for strategic liquidity issues,” Urban said. “But I wouldn’t say all of our sellers are distressed.”
Electra America, AKA Launch Distressed Hotel Fund therealdeal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from therealdeal.com Daily Mail and Mail on Sunday newspapers.
Retired baseball superstar Alex Rodriguez found his latest real estate investment.
Rodriguez’s A-Rod Corp and joint venture partner Adi Chugh of Maverick Commercial Properties are investing in CGI Merchant Group’s $650 million Hospitality Opportunity Fund. The two partners will help CGI with its investment strategy, expand its debt capital market capabilities and aid in acquiring trophy properties, according to a press release.
The hotel market has been hit especially hard during the pandemic, with some properties closing permanently and lenders taking over from overleveraged borrowers.
“Citywise, we’re looking at the major markets where we expect the resurgence of the local and international traveler,” Chugh told The Real Deal, referring to assets that have struggled during Covid. The fund could hold onto properties for three to five years, or longer.