NEW YORK (BUSINESS WIRE) – StepStone Real Estate (“StepStone”), a private real estate investment firm affiliated with the StepStone Group, a global private markets firm, and HRI Properties, a leading diversified real estate company, today announced that StepStone committed to invest up to $87.5 million in HRI. New Orleans-based HRI Properties is a leading diversified real estate company that develops, acquires, owns and manages premium branded and independent hotels, upscale apartments, and mixed-use properties in major urban U.S. markets. The investment will fund the continued expansion of HRI’s portfolio into growing, dynamic urban markets. StepStone’s commitment dovetails with prior rounds of growth capital funded by Almanac Realty Investors in 2014 and 2016. StepStone closed its latest fund, StepStone Real Estate Partners III (“SREP III”), in February, with US$700 million in capital commitments, $1.1 billion including committed co-investment capital.
The HRI investment provides us with diversified exposure to high quality assets in major urban markets
HRI specializes in urban in-fill projects and the adaptive reuse of historic buildings. Under the leadership of Tom Leonhard, CEO, HRI owns and operates a portfolio with over 3,000 hotel rooms, over 1,500 apartment units and over 165,000 square feet of commercial space. HRI also provides third-party hotel and apartment management services through its subsidiaries HRI Hospitality and HRI Management, to 13 hotels and 31 multifamily properties. “StepStone’s investment will fund HRI’s ongoing growth through the acquisition, development and redevelopment of urban projects,” said Tom Leonhard.
“The HRI investment provides us with diversified exposure to high quality assets in major urban markets,” said Brendan MacDonald, a Partner at StepStone Real Estate. “HRI’s management team, portfolio and track record are best in class, and we’re excited to participate in their ongoing growth.”
HRI and its affiliates have completed more than 82 large-scale projects in 12 states totalling more than $2 billion in project costs.
Current projects under development include:
- Hyatt Unbound – Nashville, TN
- Homewood Suites – New Orleans, LA
- Aloft – Philadelphia, PA
- Robert W. Baird & Co. served as financial advisor to HRI in the transaction.