Ares US Real Estate Opportunity Fund III
Eldorado
Springs
Gaylord Rockies Convention Center (Realized)
Development of a 1,500-key hotel with 415,000 square feet of meeting space outside of Denver, CO
6
Genesee
green
170
Golden
Superior
Indian Hills
128
58
Morrison
470
70
de
(287)
285
Broomfield
COPEN
E
Arvada
70
Lakewood
E
U
LI
Westminster
M
n
THE
LE
TE BE
Thornton 76
2
Denver
Littleton
E
Englewood
Commerce
City
Henderson
70
Confidential - Not for Publication or Distribution
76
Rocky
Mountain
Arsenal
National...
Aurora
225
Denver
International
Airport
W
Investment Date:
Location:
Investment Theme:
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Key Meetings Location with Excellent Access
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Technology Disruption of Space
Utilization
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Key Metrics
Dec-2015 Equity Committed:(10)
Denver, CO Realized Gross IRR/EM:(2)
Development of Convention Center Hotel
Investment Rationale & Key Drivers of Return
Attractive Public Incentive Package Mitigated Risk
Acquired the land for nominal consideration
Secured city and state tax rebates for 25-30 years, which effectively reduced
Ares' basis in the project by 35-40%
■
Favorable Basis Through
Structuring
Strong Sponsor Track Record and Repeat Ares Partner
53
Situated proximate to a major CBD and the Denver International Airport
Offers a desirable alternative to Las Vegas in a year-round climate
Ares and its development partner, RIDA Development Corporation, have
together developed three convention center hotels totaling 3,300 rooms
Closed into GMP, construction loan, and groundbreaking
Investment Outcome
■ Delivered the project on time and on budget in Q4 2018
■ Pre-sold over one million room nights during construction
In Q4 2018, shortly after opening, Ares sold its interest to its joint venture partners for a
gross purchase price of $1.275 billion, generating a 44% gross IRR and 2.4x gross EM (2)
Past performance is not indicative of future results. For return information for Gaylord, inclusive of Highpoint Land, please refer to page 58 for the full AREOF
Il track record. Please refer to notes on page 50 and endnotes starting on page 65.
$112.5 million
44% / 2.4x
ARESView entire presentation