American Realty Advisors: Press Release

Back to List of Press Releases

Contact: Joyce Ezaki
818/409-3280

AMERICAN REALTY ADVISORS PROVIDES PREFERRED EQUITY

FINANCING FOR THE GRAND HYATT WASHINGTON

GLENDALE, Calif. -- (Market Wire) - November 19, 2008 - American Realty Advisors announced today that it has provided preferred equity financing to an affiliate of Quadrangle Development Corporation for the recapitalization of the Grand Hyatt Washington, an 888 room, luxury full-service hotel located in the burgeoning East End of Washington, DC. The investment was executed on behalf of one of American's separate account clients.

The Grand Hyatt Washington, built in 1987, underwent a full-scale guestroom, guest bath and corridor renovation in 2004, and a comprehensive renovation of the hotel's meeting and ballroom areas was completed this year. The property includes 43,000 square feet of flexible meeting space, five on-site dining options, and guest access to an adjacent fitness club with an indoor swimming pool and spa treatment rooms. The property's convenient location in the East End places it within walking distance of the U.S. Capitol Building, the White House, the Verizon Center, Union Station, the Smithsonian Museums, and the Washington, DC Convention Center. The Hotel also benefits from indoor access to the Washington Metro Center Metrorail, the central hub of public transportation in the District.

Quadrangle Development Corporation is one of Washington, DC's largest full-service commercial real estate developers. Quadrangle's business strategy is focused on the development, acquisition, ownership and operation of investment-grade commercial, multi-family, and residential properties in the DC, Virginia and Maryland regions. Stanley Iezman, President and Chief Executive Officer of American stated, "Our investment in the Grand Hyatt Washington, one of the top competitors in the luxury hotel category in downtown Washington, DC, is predicated on the strong sponsorship of Quadrangle Development Corporation, the property's excellent location and physical plant, and the strong brand affiliation of Grand Hyatt. We are confident that with careful capital structuring and building on the property's proven historical performance this investment will generate competitive returns and downside protection for our client."

American Realty Advisors, a California corporation, is an SEC-registered investment advisor under the Investment Advisers Act of 1940 and a leading provider of real estate investment management services to institutional investors. With more than $4.4 billion* in assets under management, American has provided innovative real estate solutions to institutional investors for over 20 years utilizing core and value-added commingled funds and separate accounts. The firm's portfolios include office, industrial, multi-family, retail and other properties nationwide. Information regarding American can be found online at www.americanreal.com.

Forward-Looking Statements: This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that do not represent historical facts and are based on our beliefs, assumptions made by us, and information currently available to us. Forward-looking statements in this press release are based on our current expectations as of the date of the release, which could change or not materialize as expected. Actual results may differ materially due to a variety of uncertainties and risk factors. Except as required by law, we assume no obligation to update any such forward-looking statements.

*Assets under management represent gross value of all assets and accounts managed by American as of June 30, 2008 (excluding partners' share of equity and partner's share of debt on partnership investments).

# # #

Back to List of Press Releases