StepStone to provide up to $87.5 mln in HRI

StepStone has agreed to invest up to $87.5 million in HRI Properties. Robert W. Baird & Co. provided financial advice to HRI on the transaction. Based in New Orleans, HRI is a diversified real estate company.

PRESS RELEASE

NEW YORK–(BUSINESS WIRE)–StepStone Real Estate (“StepStone”), a private real estate investment firm affiliated with the StepStone Group, a global private markets firm, and HRI Properties, a leading diversified real estate company, today announced that StepStone committed to invest up to $87.5 million in HRI. New Orleans-based HRI Properties is a leading diversified real estate company that develops, acquires, owns and manages premium branded and independent hotels, upscale apartments, and mixed-use properties in major urban U.S. markets. The investment will fund the continued expansion of HRI’s portfolio into growing, dynamic urban markets. StepStone’s commitment dovetails with prior rounds of growth capital funded by Almanac Realty Investors in 2014 and 2016. StepStone closed its latest fund, StepStone Real Estate Partners III (“SREP III”), in February, with US$700 million in capital commitments, $1.1 billion including committed co-investment capital.

HRI specializes in urban in-fill projects and the adaptive reuse of historic buildings. Under the leadership of Tom Leonhard, CEO, HRI owns and operates a portfolio with over 3,000 hotel rooms, over 1,500 apartment units and over 165,000 square feet of commercial space. HRI also provides third-party hotel and apartment management services through its subsidiaries HRI Lodging and HRI Management, to 13 hotels and 31 multifamily properties. “StepStone’s investment will fund HRI’s ongoing growth through the acquisition, development and redevelopment of urban projects,” said Tom Leonhard.

“The HRI investment provides us with diversified exposure to high quality assets in major urban markets,” said Brendan MacDonald, a Partner at StepStone Real Estate. “HRI’s management team, portfolio and track record are best in class, and we’re excited to participate in their ongoing growth.”

HRI and its affiliates have completed more than 82 large-scale projects in 12 states totalling more than $2 billion in project costs. Current projects under development include:
Hyatt Unbound – Nashville, TN
Homewood Suites – New Orleans, LA
Aloft – Philadelphia, PA

Robert W. Baird & Co. served as financial advisor to HRI in the transaction.

About StepStone Real Estate
StepStone Real Estate, founded by partners Jeff Giller, Josh Cleveland and Brendan MacDonald, is part of StepStone Group, a leading private markets firm that oversees over US$100 billion of private capital allocations, including approximately US$28 billion of assets under management. StepStone Group creates customized and targeted portfolios for the world’s most sophisticated investors using a highly disciplined research-focused approach across real estate, private equity, infrastructure and private debt. It is a global firm with 14 offices in 10 countries around the world: New York, San Francisco, La Jolla, Toronto, London, Zurich, Beijing, Hong Kong, Tokyo, Seoul, São Paulo, Dublin, Perth and Sydney.

About HRI Properties
HRI is a diversified real estate company that develops, acquires, owns and manages premium branded and independent hotels, upscale apartments, and mixed-use properties in major urban U.S. markets. The company’s service platform and portfolio, mixing both hotel and apartment uses in a single building, along with its multifaceted in-house capabilities including design, development and construction management, are a differentiated approach in the real estate industry. HRI is Elevating the Urban Experience for its hotel and residential guests who help infuse new life into cities undergoing revitalization.

About Almanac Realty Investors
Almanac Realty Investors is a leading provider of growth capital to public and private real estate companies. From the time of its founding in 1981, originally under the name Rothschild Realty, the group has raised $4.8 billion related to a wide array of real estate opportunities. Since 1996, Almanac Realty Investors’ primary investment activity has consisted of making private placements into private and public real estate operating companies. To date, Almanac has committed/invested approximately $4.1 billion into more than 38 companies in North America. For more information, please visit our website at www.almanacrealty.com