Ares US Real Estate Opportunity Fund III
One Channel Center (Realized)
Development of a 501,650 SF, Class A office building in the Seaport District of Boston, MA
Cambridge
rd
SS
19
از
STATE STREET
2A
Fenway Park
Museum of Fine
Arts, Boston
Binney St
93
90
BACK BAY
TD Garden
Boston
Boston Children's
Museum
SOUTH END
90
93
90
EAST BOSTON
The Paul Revere House
SOUTH BOSTON
90
Investment Date:
Location:
Investment Theme:
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Vibrant Corridor in Gateway Market
■
Rapid-Growth Submarket in
Major Metro
I
■ Off-Market Opportunity with Established Partner
I
Key Metrics
Mar-2012
Equity Committed: (10)
Boston, MA Realized Gross IRR/EM:(2)
Develop Core-Quality Asset
Investment Rationale & Key Drivers of Return
Substantially De-Risked Development
Technology Disruption of Space
Utilization
Situated in Boston, one of the strongest metropolitan areas in the country
The Seaport District has been transformed from an old industrial neighborhood
into a vibrant mixed-use community
The office component was fully leased to State Street
Ground breaking occurred simultaneously with construction loan closing and
Guaranteed Maximum Price execution
$58.5 million
30% / 2.0x
Sourced off-market through an existing relationship with the developer
Investment Outcome
Closed on the site in Q1 2012 and commenced construction shortly thereafter
Delivered the project on schedule in Q3 2013 with a total project budget of $230 million
In Q3 2014, Ares closed a $240 million refinancing, returning all equity invested
In Q4 2015, Ares sold the office component for $317 million, realizing a 30% gross IRR and
2.0x gross EM (2)
55
On the heels of Ares successful outcome with Channel Center, continued attractive
market dynamics and deep local relationships, Ares invested in the development of
Parkside on A, a 250,000 sf, Class A building in the Seaport District of Boston
Past performance is not indicative of future results. Please refer to full AREOF track record on page 60, and notes on page 50 and endnotes starting on page 65.
Confidential - Not for Publication or Distribution
After selectively testing the market, Ares sold Parkside on A to an institutional buyer in
July 2019
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