American Realty Advisors

American Realty Advisors (ARA) is an investment advisor registered with the SEC and a provider of real estate investment management services to institutional investors. As of December 2016, the company had USD$8 billion in gross assets under management.[1] The company specializes in acquiring assets and providing equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States, for commercial office, industrial, multi-family, retail and other properties. ARA's company headquarters is in Los Angeles, California, and the firm has eight additional offices across the country.[2]

American Realty Advisors
TypePrivate
Founded1988 (1988)
Glendale, California, U.S.
Headquarters515 S. Flower St., 49th Floor,
Los Angeles, California, U.S. 90071
Area served
Nationwide
Key people
Stanley L. Iezman,
Chairman and CEO;
Scott Darling,
President and Executive Managing Director
ProductsReal estate investment management services
Services
  • acquiring assets and providing equity
  • preferred equity
  • mezzanine debt
  • debt
  • hybrid debt to primary investors and developers
Websitehttp://www.aracapital.com/

History

ARA was founded in 1988 in Glendale, California.[3] The firm has provided investment management services since its inception through individual client separate accounts and a series of commingled funds since the firm's inception. In November 2003, the company launched an open-end core real estate commingled fund with the goal of creating a portfolio of income-oriented commercial real estate diversified by property type, location, and economic exposure.[4] As of the latest SEC filing in October 2014, this portfolio had grown to net assets of over $3.9B,[4] and contained 149 properties nationwide, comprising approximately 24.4 million square feet of office, retail, industrial, and residential space.[5]

In December 2009, ARA launched a value-added fund which focuses on office, industrial, multi-family and retail properties.[6][7][8] According to the company's April 2017 Investment Advisor disclosure (Form ADV), the fund had grown to just over USD$926 million.[9]

The firm has undertaken several industrial developments, the largest of which was a 29-acre site in the San Francisco Bay area, which was developed into the largest industrial warehouse ever built in the Bay Area. The project was developed in partnership with McShane Companies/Conor Commercial.[10] It has stated plans to continue to invest in markets and assets that offer the potential for superior, long-term income growth and that are competitively located in markets that can provide a favorable rent growth environment.[11]

In 2016, ARA completed one of the largest transactions of the year in the San Francisco office market with the acquisition of Foundry Square III, a class A trophy office asset, reportedly for $350 million. The property consists of a 10-story, 291,093-square-foot office building that includes ground floor retail space, and is a block from the Transbay Transit Center.[12][1]

In June 2017, the company relocated its headquarters to Los Angeles.[13]

Markets

Target markets the company has identified for investment include major "innovation hubs" such as NY City, San Francisco, Seattle, Boston, Washington DC and the Los Angeles/Orange County Metro area.[11]

Its investors include a broad range of public employee retirements systems, Taft-Hartley and corporate pension funds, foundations, endowments, and other institutional investors.[10][14]

Sustainability/green initiatives

The firm has a focus on sustainability for its commercial real estate portfolio,[15] and is recognized as a Premier Member of Certification Nation by ENERGY STAR, a U.S. Environmental Protection Agency program. As of January 2015, the firm had 37 LEED-certified properties.[16]

In December 2014, the firm launched additional sustainability initiatives encompassing energy and water conservation, and recycling programs. The company expects these sustainability efforts to boost asset value and net operating income for its real estate assets.[17]

Specialized advisory services

ARA works with labor unions and contractors/management to invest in commercial real estate development projects and other real estate assets seeking to achieve solid investment returns on behalf of their related pension plans, as well as to enhance the opportunity for the creation of local jobs for active union members.[10]

In addition, the firm updates the qpam.com web site,[18] offering research and educational resources about the role of a qualified professional asset manager (QPAM) to act on behalf of trustees of pension plans governed by the Employee Retirement Income Security Act of 1974 (ERISA) who include real estate as part of their asset allocation strategy.[19]

Notes
  1. "American Realty Buys San Francisco's Foundry Square III". crenews.com. 2016-12-15. Retrieved 2017-05-08.
  2. "Bloomberg Businessweek Company Overview of American Realty Advisors". Businessweek.com. Retrieved 2014-11-17.
  3. "Overview of American Realty Advisors". manta.com. Retrieved 2014-11-17.
  4. "US SEC Filing: AMERICAN CORE REALTY FUND, LLC". SEC.gov. 2014-10-28. Retrieved 2014-11-17.
  5. "Portfolio Management". americanreal.com. Archived from the original on 2014-11-09. Retrieved 2014-11-18.
  6. "IREI Investment Guide: Value-added Funds". irei.com. 2015-05-28. Archived from the original on 2015-06-02. Retrieved 2015-06-01.
  7. "American Realty Advisors Pays $100M for M-F Asset in L.A.'s Silicon Beach". CPExecutive.com. Retrieved 2014-11-17.
  8. "SEC filings - EDGAR search results". sec.gov. Retrieved 2015-06-02.
  9. "AMERICAN REALTY ADVISORS Form ADV". adviserinfo.sec. 2017-04-26. Retrieved 2017-05-08.
  10. "American Realty Advisors Breaks Ground on LEED-Certified Distribution Facility". Heartlandnetwork.org. 2013-09-03. Retrieved 2014-11-21.
  11. "Institutional Investors Eye Needs-Based Retail Assets". GlobeSt.com. 2014-12-16. Archived from the original on 2014-12-18. Retrieved 2014-11-17.
  12. Littman, Julie (December 16, 2016). "JV Sells Transbay Office Tower To American Realty Advisors". Bisnow Media.
  13. "American Realty Relocates HQ to DTLA, Rebrands ARA". connect.media. Retrieved 2017-06-19.
  14. "Fort Lauderdale General Employees increases American Realty Advisors allocation". americanreal.com. 2014-06-06. Retrieved 2014-11-21.
  15. "American Realty Advisors Launches Sustainability Initiative". nreionline.com. 2014-12-08. Retrieved 2014-12-19.
  16. "Who's leading the Certification Nation?". energystar.gov. Retrieved 2014-12-19.
  17. "American Realty Advisors Launches Sustainability Initiative". nreionline.com. 2014-12-08. Retrieved 2014-12-17.
  18. "American Realty Advisors". predictiveops.com. 2017-04-26. Retrieved 2017-05-08.
  19. "About Us". qpam.com. 2013-03-18. Retrieved 2014-11-18.
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