ANAHEIM, CA—CenterSquare Investment Management,an investment boutique of BNY Mellon, says anAnaheim-area hotel property has been acquired in a joint venture bythe CenterSquare Value-Added Fund III.CenterSquare has partnered with Foster Enterprisesand leading hotel management firm Interstate HotelsGroup to acquire the property.
"This investment presented a unique opportunity to acquire arelatively new hotel property possessing many fundamentalattributes that appeal to the demand drivers specific to thismarket, yet was underperforming as a result of being operated as anindependent hotel lacking institutional ownership," saidJeff Reder, senior vice president, private realestate for CenterSquare. "The investment was sourced off market andacquired at a compelling basis. We will seek to execute ourbusiness plan and stabilize operations, with the goal of generatingan attractive return and enhancing long-term value asDisneyland continues to make significantinvestment in their park, most notably with the planned addition ofStar Wars Land."
CenterSquare and its partners will implement an extensive propertyimprovement plan for the hotel, which includes a complete overhaulof all guest rooms and common areas, and the addition of a new poolarea. Upon completion of the renovations, the hotel willre-open as a Candlewood Suites, one of theIntercontinental Hotel Group brands. By seeking toprovide a high quality product, institutional ownership andmanagement, affiliation with a major hotel brand and proximity toDisneyland, the asset should be positioned to perform favorably inthis high demand hotel market, the investors said.
"This acquisition is an excellent illustration of CenterSquare'sinvestment strategy to drive return by focusing on middle-markettransitional assets that offer the potential to achieve greateryields through the execution of traditional value-add strategies,"said Todd Briddell, CenterSquare's CEO and ChiefInvestment Officer. "We believe that the Anaheim property, justblocks away from Disneyland, is very well located real estate witha value-add component in one of the strongest hotel markets in thecountry. It is the latest addition to CenterSquare's portfolio thatleverages deep industry knowledge and relationships to seek togenerate attractive potential returns."
CenterSquare is a global investment manager focused on activelymanaged real estate and infrastructure strategies. Founded in 1987,it operates as one of the investment boutiques of BNYMellon Investment Management. CenterSquare managesapproximately $6.8 billion of real estate and infrastructuresecurities through CenterSquare Investment Management, Inc. andapproximately $1.3 billion of debt and private equity real estateinvestments through CenterSquare Investment Management Holdings,Inc. (together referred to as "CenterSquare"), as of September 30,2015.
BNY Mellon Investment Management is one of the world's leadinginvestment management organizations and one of the top U.S. wealthmanagers, with $1.6 trillion in assets under management.