NYC's Guardian Commits $200M to Lowe Unit

LOS ANGELES-Locally based Lowe Enterprises Investors and New York City's Guardian Life Insurance Co. have formed a venture in which Guardian has allocated $200 million to expand Lowe’s investment activities by investing alongside clients and partners of LEI, which is the investment management subsidiary of Lowe Enterprises. Guardian will acquire a substantial but non-controlling interest in LEI, which will continue to be managed on a day-to-day basis by Brad Howe and Bleecker Seaman, both with the title of co-CEO.

Howe says in a prepared statement that the partnership with Guardian "positions us to take advantage of the recovery of the real estate market and will allow us to better serve our clients by improving our capital resources.” Tom Sorell, executive vice president and chief investment officer of Guardian, says, "We view this as an opportune time to invest in real estate with a partner that has a strong, long-term record of performance in identifying compelling investment opportunities that will provide attractive returns for our policyholders.”

Lowe Enterprises entered the real estate investment management field in the late 1980s and has "a record of success that spans multiple market cycles," the company said in announcing the Guardian partnership. According to Robert J. Lowe, chairman and CEO of Lowe Enterprises Inc., the agreement "presents a tremendous opportunity to expand our real estate investment activities in partnership with a well-respected and highly rated mutual life insurance company." Grail Partners LLC acted as financial adviser to Lowe, and De Guardiola Advisors, Inc. acted as a financial adviser to Guardian in this transaction, the closing of which is subject to obtaining customary consents.

Lowe Enterprises Investors provides real estate investment management services on behalf of institutional and high-net-worth clients and partners through both individually managed and commingled fund relationships. The firm has been responsible for $6 billion in real estate assets, including commercial, hospitality and debt investments, since inception in the late 1980s.

Among LEI's recent deals locally was its acquisition of the landmark Lido Apartments in Hollywood for $9.4 million. Lowe said it planned immediate improvements on the five-story complex, considered vintage Hollywood for its architectural and interior design.