Corten Real Estate Exits Investment in Iconic Ace Hotel Brooklyn

Corten Real Estate's Exit from Ace Hotel Brooklyn

Corten Real Estate recently announced its exit from a preferred equity investment in the renowned Ace Hotel Brooklyn, a significant move in their investment strategy. Partnering with GFI Capital Resources Group, Inc. and Spruce Capital Partners, Corten played a pivotal role in the hotel's recapitalization back in February 2021. This investment was crucial as it focused on the iconic location situated within the vibrant Boerum Hill neighborhood of Brooklyn.

The Ace Hotel Brooklyn boasts 287 keys, making it a prime urban lifestyle destination. With its array of amenities, such as diverse food and beverage options, retail spaces, and dedicated event venues, the hotel is designed to cater to a modern audience seeking luxury and convenience. The investment was appealing from the beginning, with Corten Principal Brandon Flury emphasizing that the unique partnership dynamics, the Ace brand identity, and the location collectively contributed to a compelling investment narrative.

Flury pointed out that “the New York City hospitality market has shown remarkable resilience following the post-COVID recovery.” The collaboration with GFI and their shared vision for optimizing the hotel operations ensured that the investment yielded a successful outcome. He expressed satisfaction with the partnership and the operational strategies implemented, predicting a fruitful future with GFI and other strategic partners in the hospitality sector.

Overview of Corten Real Estate

Corten Real Estate is known for targeting middle-market assets across the United States, especially those affected by financial, operational, or strategic challenges. Their approach combines both debt and equity instruments to create tailored capital solutions for a diverse array of stakeholders.

Insights on GFI Capital Resources Group, Inc.

Since its inception in 1983, GFI has effectively managed around $3.0 billion in real estate assets, specializing in hospitality and development. They have been at the forefront of constructing and repositioning lifestyle hotels, including the Ace Hotel Brooklyn, which has gained both domestic and international acclaim. Their portfolio also includes the acclaimed Beekman Hotel and Thompson Central Park.

As the hospitality sector continues to evolve, Corten's exit from their investment in Ace Hotel Brooklyn signals a strategic repositioning influenced by successful partnerships and evolving market conditions. This exit not only highlights the resilience of the New York City hospitality market but also reinforces the potential for innovative investment strategies within the sector.

In conclusion, Corten's bold decision to exit the Ace Hotel investment underscores a commitment to agile real estate investment and operational strategies that can adapt to the ever-changing landscape of the hospitality industry. Moving forward, both Corten and GFI are expected to focus on opportunities that capitalize on their strengths and expertise, ensuring that they remain competitive in the dynamic real estate market.