ARC Partners and Ithaca Capital have jointly acquired the W Hotel Bogotá for US$40m. This is the second joint venture for the two firms, who previously acquired the JW Marriot in Panama.
(Press Release) ARC Partners, a Miami-based private equity firm focused on real estate, continues to demonstrate momentum in building a portfolio of nontraditional assets with the acquisition of W Hotel Bogota, the second transaction in partnership with Ithaca Capital, also based in South Florida. The deal expands ARC Partners’ footprint in Central and South America and marks a continuation of the firm’s fast-paced acquisition mode. Already, ARC has exceeded $1 billion in value through its investments in United States, Panama, India, Nigeria, and the Caribbean.
ARC has been operating for 20 years and has a history of U.S. investments in first-lien and second-lien mortgages for commercial and residential assets. With a concentration in distressed debt and an expanding profile overseas, ARC Partners continues to look for new business opportunities domestically.
“We take an active role with non-core and distressed debt,” said David Gordon, managing director at ARC Partners. “We leverage our team’s experience for success, and because distressed debt offers potentially high returns, we have expanded – and will continue to do so.”
The company’s direction in Central and South America is decidedly different. Its first transaction with Ithaca Partners was the acquisition of the JW Marriot in Panama, a high-profile hospitality property with international renown. The W Hotel Bogota likewise has an international following and represents ARC’s continued willingness to embrace nontraditional assets.
“Our expanded scope has already shown itself to be a powerful and rapid method of growing value, so I fully anticipate continuing to seek nontraditional assets. There’s every reason to accelerate our buying in this space and repeat our successes,” added Mr. Gordon. “Our pipeline includes opportunities to purchase more commercial and residential distressed debt internationally, as well as here in the U.S.”
Yale Mortgage, also based in South Florida, serves as the mortgage originator for ARC’s new originated hard-money loans for a broad spectrum of investors’ needs. Loan amounts range from $200,000 to $3M and provide competitive terms.
Ithaca Capital has likewise recognized ARC’s approach as a desirable strategy. “We have found true partners in the ARC team,” added Orestes Fintiklis, managing director of Ithaca Capital. “We look forward to working with them on even more acquisitions of deep value alternative assets.”
In addition to its two joint ventures with Ithaca in the hospitality sector, ARC Partners acquired a solar farm in Central America in 2018 and expanded its footprint in other hospitality projects. In Nigeria, ARC invested in Africa Plus Partners, a fund that finances small-capped infrastructure and student housing. ARC also finalized its last round of capital funding for four toll road projects in India.
“Our recent acquisitions show we have a streamlined, scalable, and repeatable process that attracts banks, hedge funds, and brokers alike,” said ARC’s managing director John Olsen. “They recognize we are fair with our pricing and can close very complex transactions quickly.”
Unlike most firms, ARC evaluates investment opportunities on individual merits, recognizing unique variables that can have a major impact on an investment’s potential or risk. This custom-tailored approach, along with its partners’ far-reaching experience in valuation, enables the firm to make investments in nontraditional asset classes with greater confidence than other firms.
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About ARC Partners
ARC is a private equity company run by John Olsen and David Gordon. With a flexible approach to investing, the company concentrates on nontraditional asset classes, as well as first- and second-lien mortgages for commercial and residential assets. ARC Partners is headquartered in Miami, Florida, and also has a team located in Panama City, Panama.