Real Estate Debt

Overview

Our real estate debt team directly originates and invests in a wide range of self-originated financing opportunities for owners and operators of U.S. commercial real estate. 

In addition to managing private funds, we make investments through a specialty finance company, ACRE, primarily focused on directly originating, managing and servicing a diversified portfolio of commercial real estate ("CRE") debt-related investments.

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Our Real Estate Debt team focuses on directly originating loans using its extensive national relationships with various owner-operators, sponsors and intermediaries of real estate properties. We seek to provide flexible financing across a potential borrower’s capital structure. While we focus on self-originated transactions, we will also selectively pursue secondary market acquisitions and club/syndicated transactions.

 

The following highlights our lending strategy:

  • Pursue compelling risk-adjusted returns by investing in what we believe to be the most attractive position in a given capital structure 
  • Drive internal deal flow primarily through direct origination 
  • Emphasize flexible transactions where our competitive advantages are strongest 
  • Actively manage portfolio through rated special servicer
  • Lead transactions and remain an active investor 
  • Leverage the power of the Ares platform

 

Debt

We Believe


We believe our principal orientation, flexibility and non-bureaucratic approach differentiate us from other debt capital providers in the commercial real estate middle market.

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Targeted Investments

Real Estate Debt Strategies

Strong Markets. Disciplined Underwriting.
Lead Investor Focus.

Our investment professionals are product and property type generalists who are able to invest in a range of commercial real estate assets – principally targeting properties (i) in strong markets, (ii) with solid competitive positioning, and (iii) controlled by experienced sponsorship teams executing value-add business plans. We primarily target major property types including industrial, multifamily, office, retail, lodging and senior-living properties and selectively consider hospitality, mixed-use, self-storage, single-tenant/owner-occupied, specialty use and student housing.

As a long-term and value-oriented investor, we analyze each investment with a primary focus on minimizing downside risk, protecting invested principal and generating an appropriate risk-adjusted return.

Our investment strategy relies on intensive due diligence, structuring experience, disciplined underwriting and active portfolio management. We actively monitor our investments to ensure operational control and to provide more value to our borrowers and their sponsors.

While we are primarily a direct lender to owners of commercial real estate, we also selectively consider third-party-led senior and subordinated debt financings, review portfolio purchases and opportunistically consider the purchase of distressed and discounted debt positions.

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Value Proposition

Potential Benefits for our Investors:
  • Dedicated and cycle-tested investment professionals with approximately 24 years of investment experience on average 
  • Power of the Ares Platform: deep relationships, differentiated market intelligence, proprietary deal flow, in-house research 
  • Strategies focused on maximizing risk-adjusted returns through economic cycles
  • Multi-asset class track record and experience (senior debt, subordinated debt, private equity)
  • Disciplined growth with a focus on long-term value creation and capital preservation
  • Alignment of interests between our investors and our partners
 
Potential Benefits for our Owner/Operators and Financial Sponsors:
  • Long-term patient investor with permanent capital
  • Flexible and creative structures
  • Active in many market environments
  • Ability to grow capital base with client needs over time
  • Execution speed
  • High certainty of closing
  • Significant resources and operational assistance
  • Deep industry relationships

 

Contact

To contact our Real Estate Group, please reach out to one of the key contacts below:

Real Estate Equity


For inquiries regarding real estate equity, please contact:

Julie Solomon

Email: [email protected]

Real Estate Debt


For inquiries regarding real estate debt, please contact:

Dhaval Parikh

Email: [email protected]