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New Owners to Launch Major Repositioning of 444-Key Property in Tarrytown, NY
Ares Commercial Real Estate Corporation to Provide Financing
NEW YORK, March 11, 2022--(BUSINESS WIRE)--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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