Värde Partners Agrees €96 Million Sale of Hotel Barcelona Apolo to Meliá

MADRID – Värde Partners, a leading global alternative investment firm, announced it has agreed to the sale of Hotel Barcelona Apolo to Meliá Hotels International, the current hotel operator, for €96 million. The transaction followed an open bidding process that attracted interest from more than 20 institutional investors.

The sale was agreed through Dospuntos Asset Management, a Värde-controlled real estate company in Spain, formed in December 2017 from the residential developer Vía Célere.

Since the acquisition of the hotel in 2015 Värde has executed a series of value creation initiatives, including refinancing the business and delivering a comprehensive investment program, to establish Hotel Barcelona Apolo as a leading destination for international tourists and corporate events.

“The timing of the sale reflects our conviction in the underlying quality of the hotel, and the enduring appeal of Barcelona as a destination for international capital. There was strong demand for the asset demonstrating the attractive dynamics that underpin the Spanish hospitality sector, and its ability to thrive as lockdown restrictions ease,” said Héctor Serrat, Managing Director at Värde. “We continue to look for opportunities to invest across the Spanish real estate market, from both an equity and lending perspective, and believe we can play an important role in supporting hoteliers as they look to reopen and stabilize their businesses.”

Alfredo Laffitte, Director General of Dospuntos Asset Management, said: “Since acquiring the property we have made a series of improvements to the hotel, helping to drive revenue growth and enhance performance. This deal highlights the continued strength of the Spanish hospitality industry, and we look forward to watching the hotel’s sustained success in the future.”

Located in the cultural heart of Barcelona, the 4-star hotel is set against the iconic Apolo Theatre and in close proximity to many major tourist attractions and cultural landmarks. It has excellent transport links and sits next to Avinguda del Paral·lel, one of the city’s key arteries, connecting Montjuic trade center, the old town, the port and the beach.

Built in 1993, the hotel has 314 rooms and conference facilities for up to c.800 people across a total built area of over 17,000 square meters.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages more than $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Värde Partners Closes $833 Million in U.S. Commercial Real Estate Loans in Second Quarter

Commercial Real Estate Lending Outlook Remains Strong

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, today announced it closed $833 million in U.S. commercial real estate loan originations in the second quarter of 2021, for a total of $1.1 billion funded this year. The 13 transactions completed in the second quarter span hospitality, multifamily, office, and mixed-use assets across five states.

“As the economy re-opens and properties recover occupancy, the commercial real estate market is driving increased demand for transitional capital, particularly for hospitality, office and multifamily properties. We expect this need to grow over the coming years as we see a re-calibration of how tenants and consumers utilize space in the wake of the pandemic,” said Jim Dunbar, Senior Managing Director at Värde Partners.

“This type of financing benefits from a tailored, flexible approach. Working with borrowers to understand their business plans, Värde is able to offer reliable capital that allows businesses to navigate the shifting environment and position for the future by renovating or evolving assets.”

Commercial Real Estate Market Outlook

The Covid-19 pandemic accelerated existing trends in various real estate sectors, but many questions remain about how these trends will play out in the medium and long term.

Hospitality was the most impacted sector. A large portion of the industry underwent significant layoffs and negotiated forbearances with their lenders. Although travel has picked up and trends are improving, various segments and markets are recovering at different rates. We expect hotel owners will continue to require capital to refinance loans and position their assets for a strong recovery.

To date, we observed that Covid has had a more muted effect on office fundamentals due to the long-term nature of underlying leases and lower level of transactions. However, we expect tenants will have a near-universal need to re-evaluate their space requirements over the coming years as leases expire. Underneath it all, the broader questions around remote work and trends toward central business districts vs suburban locations have yet to be answered.

Multifamily continues to benefit from an undersupply of housing units across the U.S. and attractive liquidity given agency financing. We expect the multifamily market to experience some near-term volatility as government stimulus tapers off and as urban locations see an impact to valuations as a result of the trend toward the suburbs. Nevertheless, the fundamentals of population growth and the reality that housing is an essential living expense make this a particularly interesting market.

In addition to these sector trends, the commercial real estate market has undergone a change in the lender landscape over the past year, with many lenders altering their focus due to the effects of the pandemic. The result is an underserved and fragmented market in our view, particularly for borrowers seeking loans in the $50-100 million range.

Värde’s CRE Lending Program

Värde has 27 years of experience investing in real estate and credit markets and has originated over $3.5 billion in commercial real estate loans since 2017. The firm has a dedicated team of experienced origination, asset management and capital markets professionals.

Through its commercial real estate lending program, Värde is a non-recourse, balance sheet lender financing all major asset classes, plus mixed-use and self-storage. Värde focuses on providing flexible capital and certainty of execution to meet the needs of experienced real estate investors.

In May, Värde closed its fourth and largest CRE CLO at $928 million. The asset pool consisted of 23 floating-rate mortgages secured by 29 commercial properties.

Second Quarter Loans

Loans closed over the quarter include:

$96 million for the refinancing of a mixed-use property in San Francisco, California.
$91 million for the refinancing a portfolio of office properties in San Diego, California.
$91 million for the refinancing of a hospitality property in Los Angeles, California.
$84 million for the acquisition of a portfolio of office properties in Broomfield, Colorado.
$80 million for the refinancing of a multifamily property in Seattle, Washington.
$74 million for the refinancing of a hospitality property in Aspen, Colorado.
$64 million for the refinancing of a multifamily property in Allen, Texas.
$63 million for the refinancing of an office property in Beverly Hills, California.
$59 million for the refinancing of a multifamily property in Kissimmee, Florida.
$42 million for the acquisition of a multifamily property in Katy, Texas.
$41 million for the acquisition of a hospitality property in Seattle, Washington.
$27 million for the acquisition of a multifamily property in Dallas, Texas.
$21 million for the acquisition of a multifamily property in Dallas, Texas.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Värde Partners Closes Firm’s Largest CRE CLO at $928 million

Loans Originated Through Värde’s Commercial Real Estate Lending Platform

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, today announced the closing of a commercial real estate collateralized loan obligation (CRE CLO). This is the firm’s fourth and largest CRE CLO, and eighth securitization of commercial real estate collateral.

The asset pool has an aggregate initial principal balance of $928 million and consists of 23 floating-rate mortgages secured by 29 commercial properties. Värde offered $759 million of bonds rated AAA through BBB-.

The underlying loans were originated by Värde through its commercial real estate lending platform and comprise a diversified portfolio of transitional, value-add, and event-driven commercial, hospitality, and multifamily mortgage loans across the United States. The properties span nine states and the District of Columbia with an average principal balance of approximately $40 million.

“The close of Värde’s latest CRE CLO demonstrates the strength of our origination platform and our position as a leading investor in U.S. commercial real estate financing markets. We believe the quality of our underwriting is further supported by the fact that none of the pre-Covid collateral required modifications. We are pleased with the continued support from capital market investors for our firm. This transaction allows us to further expand our lending platform, providing borrowers with flexible solutions and reliable capital,” said Brian Schmidt, Partner and Head of Mortgages and North America Real Estate at Värde.

Expanding on the post-Covid environment and opportunity set, Jim Dunbar, Senior Managing Director at Värde, added: “We are at the beginning of a CRE CapEx cycle and we believe the nearly $4 trillion U.S. commercial real estate market presents a massive opportunity with favorable supply/demand dynamics. Covid has accelerated a number of trends that are driving tenants to rethink how they utilize space and landlords to consider how they can improve their properties to attract tenants. Värde is well-positioned to support this area of transitional lending, seeking to help borrowers achieve their business plans through renovations, repositioning, or navigating liquidity as markets recover.”

Värde has 27 years of experience investing in real estate and credit markets and has originated over $3 billion in commercial real estate loans since 2017. The firm has a dedicated team of experienced originators, asset management and capital markets professionals. Through its commercial real estate lending program, Värde is a non-recourse, balance sheet lender financing all major asset classes, plus mixed-use and self-storage.

Värde closed its most recent CRE CLO in October 2019, backed by 24 mortgages with an aggregate principal balance of $628 million. In addition, Värde closed CRE CLOs in February 2018, with an aggregate principal balance of $368 million backed by 25 mortgages, and in November 2018 with an aggregate principal balance of $458 million backed by 25 mortgages.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Värde Views: Credit Market Update

Värde Partners today shares an update on the economic conditions affecting the investment landscape, the evolving opportunity set and the outlook for credit markets as Covid-related tail risks continue to diminish, and the path to a new normal begins to take shape.

Download Värde Views here featuring commentary from Värde Partners’ CIOs Ilfryn Carstairs, Giuseppe Naglieri and Brad Bauer.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.Varde.com.

Värde Partners Closes $309 Million in U.S. Commercial Real Estate Loans

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, today announced it closed $309 million in U.S. commercial real estate loan originations in the first quarter of 2021. The six transactions span multifamily, office, and hospitality assets across four states and the District of Columbia.

“In an environment where lending conditions have tightened, Värde is able to offer borrowers flexible and reliable capital. We have seen significant demand for the financing of office space, hotels, and multifamily housing with committed sponsors through the pandemic,” said Jim Dunbar, Senior Managing Director at Värde Partners.

Loans closed over the quarter include:

$63 million for the acquisition of a multifamily property in Frisco, Texas.
$63 million for the acquisition of a multifamily property in Lewisville, Texas.
$55 million for the refinancing of an office property in Indianapolis, Indiana.
$49 million for the refinancing of an office property in Orange, California.
$40 million for the acquisition a multifamily property in Centennial, Colorado.
$39 million for the acquisition of a hospitality property in Washington, D.C.

Värde has 27 years of experience investing in real estate and credit markets and has originated over $2.5 billion in commercial real estate loans since 2017. The firm has a dedicated team of experienced originators, asset management and capital markets professionals.

Through its commercial real estate lending program, Värde is a non-recourse, balance sheet lender targeting transitional, value-add and stabilized properties across the U.S. The firm finances all major asset classes, plus mixed-use and self-storage.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.Varde.com.

Larry H. Miller Real Estate Acquires Daybreak from Värde Partners

Värde Sells Premier Utah Master-Planned Community in Deal That Includes More Than 1,300 Undeveloped Acres

MINNEAPOLIS, MN and SANDY, UT – Värde Partners and Larry H. Miller Real Estate, a portfolio company of the Larry H. Miller Group of Companies, today announced that Larry H. Miller Real Estate has acquired Daybreak, a premier master-planned community in South Jordan, Utah, from Värde Partners. The purchase consists of more than 1,300 undeveloped acres, including ownership interest in a portion of existing commercial assets and future commercial development, as well as remaining undeveloped residential property. The transaction does not include existing homes within the Daybreak community and certain other assets.

Steve Starks, Chief Executive Officer for the Larry H. Miller Group of Companies, said: “We are excited to add the Daybreak community, one of the largest master-planned communities in the country, to our growing real estate portfolio.” Starks continued, “We look forward to building on the already established success of this community with the remaining undeveloped commercial area and the thousands of residences to be built within this regional destination area.”

Brendan Bosman, Managing Director at Värde, commented: “While Daybreak is truly unique, it is a great example of Värde’s approach to investing in and growing master-planned communities throughout the U.S. Daybreak is an ecosystem consisting of a talented development team, planners, homebuilders, financial partners, the City of South Jordan and residents all working together to create a vibrant community. We’d like to express our deep appreciation to each of these groups for their many contributions to making Daybreak one of the top master-planned communities in the country. We are proud of where the community is today, and we are looking forward to following Daybreak’s continued success under the Larry H. Miller Group’s stewardship.”

Värde Partners acquired Daybreak land holdings in 2016 and has added value through thoughtful investment in key areas of the community. By diversifying the mix of housing options available and making it more accessible to more homebuyers, home sales increased from approximately 450 to over 1,000 per year.

In addition to new housing components, foundational commercial uses were pursued, including an expansion of the University of Utah Medical Center campus, the South Jordan VA Clinic, and a new Salt Lake County library, which is set to open this fall.

As part of the strategic growth of the community, Värde invested in the planning and initial construction of the Watercourse amenity, a series of interconnected channels and lakes that will become the focal point of Daybreak’s residential neighborhoods for years to come.

Today, Daybreak consists of a vibrant mix of urban homes, workplaces, shops, cafés and restaurants, and outdoor recreation opportunities. The development is focused on long-term sustainability and managed growth that includes multi-modal transportation choices, a variety of housing choices, local employment opportunities, open space and biodiversity, water conservation, energy efficient infrastructure, education support and partnerships, and diversity and inclusivity.

RCLCO’s Top-Selling Master-Planned Communities Report released earlier this year, ranks Daybreak at #5 in the nation and #1 in Utah, based on total home sales.

Brad Holmes, President of Larry H. Miller Real Estate, said: “The Daybreak acquisition aligns perfectly with our real estate development and property management capabilities, and our team’s proven ability to collaborate with our partners to deliver innovative solutions in the communities where we live, work and recreate. This transaction creates an opportunity for Larry H. Miller Real Estate to not only expand our real estate footprint and holdings, but to also creatively and proactively address regional growth through mixed-use planning and development. We are a builder of communities and are committed to the continued success of this nationally ranked and thriving master-planned development.”

South Jordan City Mayor Dawn Ramsey commented: “We couldn’t be more excited to partner with Larry H. Miller Real Estate and their leadership to ensure we continue to serve the citizens of South Jordan in meaningful ways. The City of South Jordan and its residents have a vested interest in the long-term outcomes and success of Daybreak. We are focused on smart growth, sustainable economic development, and a robust quality of life. With a significant portion of Daybreak undeveloped, we are thrilled to welcome the Larry H. Miller team to South Jordan and look forward to working with them to benefit current and future homeowners, employers and businesses.”

Salt Lake County Mayor Jenny Wilson said: “Salt Lake County is proud of the progress and successes within the Daybreak community. We see a large portion of our growth taking place in this area and look forward to working with Larry H. Miller Real Estate and other stakeholders to develop plans that support job growth, open spaces and recreation, strong infrastructure, and community destinations.”

Terms of the transaction were not disclosed. Land Advisors Organization served as the broker for the acquisition.

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About Larry H. Miller Group of Companies

Headquartered in Sandy, Utah, the Larry H. Miller Group of Companies is a privately owned family business with operations located across the western United States. The LHM Group’s focus falls within the primary categories of automotive, sports, entertainment, finance, insurance, real estate and health care. For more information about the LHM Group, visit www.lhm.com.

About Larry H. Miller Real Estate

Established in 1986, Larry H. Miller Real Estate develops and manages a variety of real estate properties, including automotive dealerships, movie theatres, office space, mixed-use residential, townhomes, apartments and construction projects. Visit www.realestate.lhm.com for more information.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.