Overview

Our real estate debt team directly originates and invests in a wide range of self-originated financing opportunities for owners and operators of U.S. commercial real estate.

In addition to managing private funds, we make investments through a specialty finance company, ACRE, primarily focused on directly originating, managing and servicing a diversified portfolio of commercial real estate ("CRE") debt-related investments.

Our Real Estate Debt team focuses on directly originating loans using its extensive national relationships with various owner-operators, sponsors and intermediaries of real estate properties. We seek to provide flexible financing across a potential borrower’s capital structure. While we focus on self-originated transactions, we will also selectively pursue secondary market acquisitions and club/syndicated transactions.

The following highlights our lending strategy:

Pursue attractive risk-adjusted returns by investing in what we believe to be the most attractive position in a given capital structure
Drive internal deal flow primarily through direct origination
Seek to emphasize flexible transactions where our competitive advantages are strongest
Actively manage portfolio through rated special servicer
Lead transactions and remain an active investor
Leverage the power of the Ares platform

We Believe

We believe our principal orientation, flexibility and non-bureaucratic approach differentiate us from other debt capital providers in the commercial real estate middle market.

Targeted Investments

Real Estate Debt Strategies

Strong Markets. Disciplined Underwriting.
Lead Investor Focus.

Our investment professionals are product and property type generalists who are able to invest in a range of commercial real estate assets – principally targeting properties (i) in strong markets, (ii) with solid competitive positioning, and (iii) controlled by experienced sponsorship teams executing value-add business plans. We primarily target major property types including industrial, multifamily, office, retail, lodging and senior-living properties and selectively consider hospitality, mixed-use, self-storage, single-tenant/owner-occupied, specialty use and student housing.

As a long-term and value-oriented investor, we seek to analyze each investment with a primary focus on minimizing downside risk, protecting invested principal and generating an appropriate risk-adjusted return.

Our investment strategy relies on intensive due diligence, structuring experience, disciplined underwriting and active portfolio management. We actively monitor our investments to ensure operational control and in an effort to provide more value to our borrowers and their sponsors.

While we are primarily a direct lender to owners of commercial real estate, we also selectively consider third-party-led senior and subordinated debt financings, review portfolio purchases and opportunistically consider the purchase of distressed and discounted debt positions.

Value Proposition

Potential Benefits for our Investors:

Dedicated and cycle-tested investment professionals with approximately 28 years of investment experience on average
Power of the Ares Platform: deep relationships, differentiated market intelligence, proprietary deal flow, in-house research
Strategies focused on maximizing risk-adjusted returns through economic cycles

Multi-asset class track record and experience (senior debt, subordinated debt, private equity)
Disciplined growth with a focus on long-term value creation and capital preservation
Alignment of interests between our investors and our partners