Ares US Real Estate Opportunity Fund III
Hudson Rive
Frying Pan
Hudson Yards Multifamily Development (Unrealized)
931-unit multifamily project in submarket with supply/demand imbalance for rental product
Chelsea Piers Sports and
Entertainment Complex
David Zwirner
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HUDSON YARDS
B&H Photo Video
Avalon West Chelsea - Electronics and...
✪ Chelsea Park
The High Line
Chelsea Market
CHELSEA
8th Ave
10th Ave
TAO Downtown
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Kleinfeld Bridal
Confidential - Not for Publication or Distribution
GARMENT
DISTRICT
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New York
The New Yorker,
A Wyndham
Ⓡ
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MIDTOWN
Madison Square
Garden
Canadiens vs Rangers 7 PM
Bryant Park
Empire State B
Ⓡ
KOREA TOWN
National Museum
of Mathematics
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S
Please refer to notes on page 50 and endnotes starting on page 65.
*Source: Hudson Yards New York, October 2018.
**There is no assurance that these rebates will be received as expected or at all.
Rentership versus Ownership
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Al
KIP
Investment Date:
Location:
Investment Theme:
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Rapid-Growth Submarket in
Major Metro
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Key Metrics
May-2019
New York, NY
Multifamily Development
Investment Rationale & Key Drivers of Return
Iconic Trophy Asset in an Irreplaceable Manhattan Location
Favorable Basis Through
Structuring
Live-Work-Play Environment
Equity Committed: (10)
51
$162.8 million
The project will stand 58 stories high offering unobstructed 360-degree views,
facing the Hudson River on the West with views of the Manhattan skyline on
the East
When completed, Hudson Yards will encompass approximately 20 million
square feet of premier office, retail, hotel and residential space and is projected
to attract a workforce of more than 150,000 employees*
Investment Status
Ares partnered with an established sponsor with whom we have maintained a long-
standing relationship to develop a 931-unit multifamily project with approximately
15,000 square feet of ground floor retail space
The property qualifies for a 35-year tax abatement that requires 25% affordable housing
units, providing a 100% exemption of the taxes attributable to the project during
construction and for 35 years following completion**
Ares closed the investment in May 2019, simultaneously closing into the joint venture,
the construction loan, and a GMP contract which is over 76% awarded as of May 2020
Superstructure subcontractor commenced vertical construction on March 14, 2020 and
construction at the property, which has been deemed essential, has continued
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