Apollo Commercial Real Estate Finance (ARI) announced a record year in 2015 with more than $1.1 billion in total investments.
A strong December marked by hundreds-of-millions of US dollars worth of commercial real estate loans helped the firm reach the milestone, the largest being a £55 million ($82 million) mezzanine loan for pre-development work on a 150,135 sq ft luxury residential project in the Mayfair neighborhood of London.
The floating-rate loan, part of a £225 million financing that includes a £125 senior loan and a £100 million mezzanine loan, has a nine-month term with a three-month extension option. Investment funds managed by Apollo Global Management and its subsidiaries acquired the remaining £45 million of the mezzanine loan, which has a loan-to-cost of 59 percent.
ARI also closed a $55 million first mortgage loan secured by a 262,282 sq ft biomedical office and laboratory building in Richmond, Virginia; a $50 million mezzanine loan for the acquisition of a 468-unit full-service hotel located in the Times Square district of New York City; and a $43.5 million first mortgage loan secured by a 180-unit luxury resort located in St. Thomas, U.S. Virgin Islands.
In addition, ARI syndicated an additional $200 million of the mezzanine loan secured by a New York City luxury condominium tower under construction on West 57th Street, reducing ARI’s total commitment for the mezzanine loan to $75 million.
The performance grew the firm’s equity capitalization to over $1.4 billion and increased its dividend per share of common stock by 15 percent, said Stuart Rothstein, ARI’s President and CEO.
“The diversity of ARI’s transactions in 2015 demonstrates the breadth of Apollo’s commercial real estate credit platform,” he said. “ARI executed both senior and subordinate transactions throughout the United States, as well as in the United Kingdom, many of which were with repeat borrowers. As we enter 2016, the Company’s investment pipeline, including future fundings for previously closed loans, is robust and we look forward to an active year ahead.”