Värde Partners and Hawkins Way Capital Make Fourth Acquisition Bringing Total Capitalization of JV to Over $1 Billion in Its First YearJanuary 31, 2023
NEW YORK – Värde Partners, a leading global alternative investment firm, and Hawkins Way Capital, a vertically integrated real estate company, announced today the recent purchase of 525 Lexington Avenue, a 655 room non-operating hotel in the Midtown East neighborhood of Manhattan. This brings the total capitalization of the JV formed by Värde Partners and Hawkins Way Capital to over $1 billion within its first year with a portfolio of eight value-add and distressed hospitality and housing assets in major U.S. cities.
“We are excited about the level of activity we’ve engaged in through our JV with Värde Partners. We continue to leverage our hospitality, multifamily and student housing owner-operator expertise to refresh and/or reposition assets in order to maximize value,” said Ross Walker Co-Founder and Managing Partner of Hawkins Way Capital.
“Our strategy for the joint venture has not changed: we aim to build a high quality, inflation protected, and cash flow generative portfolio,” said Tim Mooney, Partner at Värde Partners. “Coming out of the pandemic, we continue to find distressed hospitality and select housing assets in prime locations in major gateway cities where we can drive this opportunity.”
The 525 Lexington property is a 35-story, 406,000 square foot building currently configured as a 655 key hotel with over 16,000 square feet of meeting space, including two double height ballrooms, a large outdoor terrace on the 16th floor, a penthouse fitness center, and a large restaurant/lounge space on the ground floor. Originally called the Shelton, 525 Lexington was the world’s tallest hotel at its completion in 1923 and is designated as a landmark building in New York City. It was converted to a Marriott branded hotel in 1990 and operated as such until its closure at the beginning of the Covid-19 pandemic.
The joint venture’s portfolio also comprises the DoubleTree by Hilton Metropolitan in the heart of Midtown Manhattan, the Sheraton Boston in the Back Bay neighborhood of Boston, and five other residential developments in New York, California, and Rhode Island.
About Värde Partners
Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested through multiple credit cycles, building on its roots in special situations and distressed to invest more than $95 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages over $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services. For more information, please visit www.varde.com.
About Hawkins Way Capital
Hawkins Way Capital, co-founded by Managing Partners Ross Walker and Karan Suri, is a vertically integrated real estate company with $2.5 billion of assets under management on behalf of institutions and individuals focused on value-add and opportunistic investments across various asset classes and geographies. The company seeks niche theses targeting attractive risk-adjusted returns. Its disciplined approach leverages the principals’ investing experience and extensive network to execute strategies that offer long-term value. Hawkins Way has offices in Los Angeles and New York. For more information, please visit www.hawkinsway.com.