Ares Management Corporation announced the final closing of Ares U.S. Real Estate Opportunity Fund IV, raising over $3.3 billion to invest in opportunistic real estate across the U.S. This marks the largest closed-end fundraise in Ares Real Estate’s history, significantly surpassing the $2.2 billion raised for the previous fund.
Combined with capital from Ares’ European opportunistic real estate strategy, the firm now has $5.5 billion of aggregate capital focused on new investment opportunities in both the U.S. and Europe. The Fund aims to acquire distressed real estate assets, reposition undermanaged properties, and pursue development projects in high-demand submarkets.
David Roth, Partner and Co-Head of Ares U.S. Real Estate, highlighted the growing opportunities for the Fund due to recent market shifts. Andrew Holm and Jay Glaubach, Partners and Co-Heads of Ares U.S. Real Estate Investments, emphasized the Fund’s success in making significant investments, including the $1.07 billion acquisition and redevelopment of the Hyatt Regency Orlando, one of the largest hotel transactions of 2024.
AREOF IV also provided preferred equity for the conversion of 55 Broad Street in New York’s Financial District, marking one of the largest office-to-residential conversions in the city’s history. The Fund attracted commitments from investors across the Americas, Middle East, Asia, and Europe, including sovereign wealth funds, pensions, and private banks.
Ares Real Estate manages $52 billion in assets and operates in key markets across the U.S. and Europe, leveraging its integrated operating capabilities to pursue diverse real estate investment strategies.
