Taconic Capital Advisors and HEI Hotels & Resorts Partner to Acquire Westchester Marriott From Ares Commercial Real Estate Corporation

NEW YORK–(BUSINESS WIRE)–Taconic Capital Advisors (“Taconic”), HEI Hotels & Resorts (“HEI”) and Ares Commercial Real Estate Corporation (“ACRE”) announced today that Taconic and HEI have partnered to develop the Westchester Marriott, to acquire a 444-key, hotel in Tarrytown, NY, from ACRE for $40 million. As part of the transaction, ACRE has decided to provide a financing facility to support the hotel property business plan.

The 15-acre property at 670 White Plains Road in Tarrytown offers 21 function rooms totaling 26,700 square feet of conference and meeting space, including a 9,000-square-foot ballroom with a total capacity of 1,100 people. Property includes a Ruth’s Chris Steak House, Cooper Mill American restaurant, gift shop, fitness center, spa and laundry facilities.

The hotel will continue to operate under the Marriott flag and will be managed by HEI Hotels & Resorts. Taconic and HEI will undertake a comprehensive $30 million case and soft goods renovation focused on all areas of the hotel. The Westchester market has lost nearly 1,200 directly competing hotel rooms in recent years, including more than 90,000 square feet of meeting space.

“The Westchester Marriott offers a unique opportunity at a time of continued and permanent reduction in market offering,” said Andrew Lam, director at Taconic. “A property of this caliber with a transformative renovation and new best-in-class management has the power to outperform.”

“In seeking this deal, HEI recognized an opportunity to execute a business plan that maximizes property value by leveraging the company’s proven track record of successful repositioning,” said HEI CEO Anthony Rutledge. “We are excited to be working with Taconic to revitalize this asset.”

This is Taconic’s first acquisition with HEI and marks Taconic’s 12th acquisitionth Hotel transaction with 17 objects and 3,700 keys last year.

HEI Hotels & Resorts is one of the nation’s leading private hotel investment and third-party management companies with a portfolio of over 90 properties across the United States. The Company’s operating platform is designed exclusively for institutional hotel properties in key city, suburban and resort locations.

“We are extremely pleased to have entered into this agreement in support of Taconic and HEI’s business plans for the Westchester Marriott,” said Bryan Donohoe, ACRE Chief Executive Officer. “We believe that the partnership between Taconic and HEI and their proven capabilities will enable the property to thrive in Westchester’s evolving market.”

About Taconic Capital Advisors

Founded in 1999, Taconic is a global institutional investment firm employing a multi-strategy, event-driven investment approach. The firm has offices in New York, London and Hong Kong with an array of investment capabilities, managerial talent and geographic reach to capitalize on the changing opportunity for investors.

About HEI Hotels & Resorts

Founded in 1985, HEI is an established expert in luxury, upper-upscale and upscale hotels in urban, super-suburban and destination resort locations across branded, soft-branded and independent lifestyle categories. The Company’s portfolio currently includes over 90 assets representing more than 28,000 keys from approximately 30 different equity partners. HEI remains one of the most active investors and managers of institutional-grade hotel properties in the United States.

About Ares Commercial Real Estate Corporation

Ares Commercial Real Estate Corporation (NYSE: ACRE) is a specialty finance company principally engaged in the origination and investment of commercial real estate loans and related investments. The company offers a wide range of flexible and reliable financing solutions for commercial real estate owners and operators via its national direct lending platform. The firm originates senior mortgage and subordinated financing, mezzanine debt and preferred stock with a focus on providing value-added financing for a variety of properties located in liquid markets throughout the United States. Ares Commercial Real Estate Corporation has been elected and qualified to be taxed as a real estate investment trust and is managed externally by a subsidiary of Ares Management Corporation. Visit www.arescre.com for more information. The contents of this website are not incorporated herein by reference and should not be construed as such.

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