Lowe Enterprises

Last updated
Lowe
Type Privately held company
IndustryReal estate investment, development and management - Commercial office, mixed use, multifamily, hospitality and retail redevelopment
Founded1972;51 years ago (1972)
Headquarters Los Angeles, California, U.S.
Key people
Robert J. Lowe, Sr., Chairman of the Board and Chief Executive Officer;
Michael H. Lowe, Co-CEO;
Robert J. Lowe, Jr., Co-CEO
Number of employees
80
Website loweenterprises.com

Lowe is a real estate investment firm based in Los Angeles. Since its founding, the company has acquired, constructed, or managed more than $21 billion in real estate assets. Its subsidiary, Destination Hotels & Resorts, was the third largest hospitality management company in the United States in 2013.

Contents

History

Lowe was founded in Los Angeles, California in 1972 by Robert J. Lowe, Sr. and three business partners as a diversified real estate investment, management, and development firm. Since its inception, it has developed, managed or acquired $32 billion in assets. In the early 1970s, Lowe formed Destination Hotels & Resorts to manage hotels and resorts it developed. In the 1980s, the company branched out into "distressed properties", ones whose financial backers were having trouble meeting debt and operating payments. [1]

In 1990, the firm expanded into investment management, forming Lowe Enterprises Investment Management, an SEC registered investment advisor.

As a privately held company, Lowe Enterprises does not report its revenues or profits. However, in 2000, Robert J. Lowe, Sr. told the Baltimore Sun that the company had "record earnings" in 1997, 1998, and 1999. Lowe also claimed that institutional investors tended to see a return of 20 percent to 25 percent in the 1990s. [1]

In 2002, the National Association of Industrial and Office Parks (NAIOP) named Lowe Enterprises its Developer of the Year. [2]

By 2009, the company had expanded into managing properties for wealthy investors and corporations, and its Lowe Enterprises Investors (formerly LEIM) subsidiary had more than $4 billion in assets under management. [3] Overall, Lowe Enterprises had about 150 employees nationwide that same year. [3] Lowe's sons, Robert Lowe, Jr. and Michael Lowe, joined the firm. [4]

Lowe debuted its 102-acre Terranea Resort at the site of the former MarineLand theme park in Rancho Palos Verdes on the Southern California Coast in 2009. The failure of Corus Bank, the construction lender for the resort, left Terranea in challenging financial condition for its first year of operation. Refinancing in 2010 put the resort on firm financial footing and it has become a popular destination for weddings and conferences along with vacationing guests.

In July 2010, The Guardian Life Insurance Company of America took a "substantial" but non-controlling interest in Lowe Enterprises Investors. The insurance company also agreed to provide Lowe Enterprises with $200 million for investment purposes. Lowe said it would seek to purchase or invest in distressed or undervalued properties in the hotel, industrial, office, and retail sectors. [5] In 2018, Lowe sold its interest in Lowe Enterprises Investors to Guardian and LEI senior executives and LEI rebranded. Lowe continues its own investment activities with joint venture partners.

In 2016, Destination Hotels merged with Commune Hotels & Resorts to form Two Roads Hospitality in partnership with GEOLO Capital, doubling the size of Lowe's hotel and resort portfolio. In late 2018, Lowe and its partner sold Two Roads Hospitality to Hyatt Hotels Corporation for more than $450 million.[ citation needed ] Lowe also sold its interest in Lowe Enterprises Investors to its partner, The Guardian Life Insurance Company of America.

Corporate structure

Lowe Enterprises generates some funds of its own for real estate investment. However, most of its financing comes from a wide range of sources, such as government entities, real estate investment trusts, other real estate development companies, and institutional investors such as hedge funds and pension funds. The company prefers to rely on a wide range of financial sources to reduce risk. [1] The company tends to invest in large projects with a view to retaining or managing the property in the long term. [1]

Related Research Articles

<span class="mw-page-title-main">Brookfield Corporation</span> Asset management company based in Toronto, Canada

Brookfield Corporation is a Canadian multinational company that is one of the world's largest alternative investment management companies, with over US$725 billion of assets under management in 2022. It focuses on direct control investments in real estate, renewable power, infrastructure, credit and private equity. The company invests in distressed securities through Oaktree Capital, which it bought in 2019. Brookfield's headquarters are in Toronto. It also has corporate offices in New York City, London, São Paulo, Mumbai, Shanghai, Dubai, and Sydney.

<span class="mw-page-title-main">Blackstone Inc.</span> American alternative investment company

Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate. Blackstone is also active in credit, infrastructure, hedge funds, insurance, secondaries, and growth equity. As of June 2023, the company's total assets under management were approximately US$1 trillion, making it the largest alternative investment firm globally.

Destination Hotels is a privately held lodging management company headquartered in Englewood, Colorado. It is the United States' largest independent hospitality management company, representing 40 luxury and upscale hotels, resorts and golf clubs internationally.

<span class="mw-page-title-main">Lone Star Funds</span> American private equity firm

Lone Star Funds, legal name of main entity Lone Star Global Acquisitions, Ltd. is an American private equity firm that invests in distressed assets in the U.S., Canada and internationally. The founder of Lone Star established its first fund in 1995 and Lone Star has to date organized 21 private equity funds with total capital commitments since inception of over $86 billion. Lone Star's investors include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high-net-worth individuals. Lone Star Funds has affiliate offices in North America, Europe and Japan.

<span class="mw-page-title-main">APriori Capital Partners</span> American private equity investment

aPriori Capital Partners is a private equity investment firm focused on leveraged buyout transactions. The firm was founded as an affiliate of Credit Suisse and traces its roots to Donaldson, Lufkin & Jenrette, the investment bank acquired by Credit Suisse First Boston in 2000. The private equity arm also manages a group of investment vehicles including Real Estate Private Equity, International Private Equity, Growth capital, Mezzanine debt, Infrastructure, Energy and Commodities Focused, fund of funds, and Secondary Investments.

<span class="mw-page-title-main">Apollo Global Management</span> American private equity company

Apollo Global Management, Inc. is an American private equity firm. Founded in New York City by Leon Black, Josh Harris, and Marc Rowan in 1990, it provides investment management and invests in credit, private equity, and real assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth funds, as well as other institutional and individual investors. Funds managed by Apollo have produced a 24% internal rate of return (IRR) to investors, net of fees.

<span class="mw-page-title-main">Istithmar World</span> A subsidiary of Dubai world

Istithmar World ("istithmar" for "investment" is an investment firm based in Dubai, United Arab Emirates. This company is a state-run business owned by Dubai World, a Dubai government-owned company, and was established in 2003. Originally known as "Istithmar," the company was renamed as "Istithmar World" in 2008.

Private equity real estate is a term used in investment finance to refer to a specific subset of the real estate investment asset class. Private equity real estate refers to one of the four quadrants of the real estate capital markets, which include private equity, private debt, public equity and public debt.

Zabeel Investments is the personal investment vehicle of Sheikh Hamdan bin Mohammed al Maktoum, Crown Prince of Dubai and chairman of the Dubai executive Council.

Blum Capital Partners, L.P., also known as Blum Capital, is an American private equity firm, founded in 1975 by Richard C. Blum. The firm headquartered in San Francisco, California. The firm is focused on leveraged buyout, growth capital and PIPE investments in small cap and middle-market companies. Blum Capital became known for pioneering a hybrid strategy for investing in public companies, combining private equity and strategic block investment.

Guggenheim Partners is a global investment and advisory financial services firm that engages in investment banking, asset management, capital markets services, and insurance services.

DFO Management is an American family office that manages the capital of Michael Dell and his family. The firm, which is based in New York and has offices in Santa Monica and West Palm Beach, was formed in 1998.

<span class="mw-page-title-main">The Fairmont Washington, D.C.</span> Luxury hotel in Washington, D.C.

The Fairmont Washington, D.C. Georgetown is a luxury Postmodernist-style hotel located at 2401 M Street NW in Washington, D.C., in the United States. The structure, in the West End neighborhood of the city, opened in December 1985 as The Westin Hotel. In December 1989, Westin sold the hotel to All Nippon Airways, which operated it as the ANA Hotel. Lowe Enterprises purchased the hotel in October 1998, and renamed it the Washington Monarch Hotel. A $12 million renovation followed in 1999. Lowe Enterprises sold the hotel to Legacy Hotels Real Estate Investment Trust in October 2002, and Legacy contracted with Fairmont Hotels and Resorts to manage the hotel. The hotel was renamed The Fairmont Washington, D.C. Legacy was itself purchased by Cadbridge Investors in July 2007 and the hotel sold to MetLife in 2014, although the property remained branded a Fairmont. A $27 million renovation was completed in January 2017.

Brookfield Property Partners L.P. is a global commercial real estate firm that is a publicly traded limited partnership and a subsidiary of Brookfield Asset Management, an alternative asset management company. Its portfolio includes properties in the office, multi-family residential, retail, hospitality, and logistics industries throughout North America, Europe, and Australia. Its subsidiary Brookfield Properties is responsible for the management of these facilities.

TruAmerica Multifamily is a Los Angeles-based multifamily investment firm that specializes in the acquisition and renovation of large class B apartment properties across the United States. Since its founding in 2013 by real estate investor Robert E. Hart, the company has acquired and/or asset manages a portfolio of more than 55,000 apartment units valued at roughly $16.1 billion.

<span class="mw-page-title-main">Fifth Wall (firm)</span>

Fifth Wall is a venture capital firm founded in 2016 by Brendan F. Wallace and Brad Greiwe. It manages the largest fund specialized in real estate technology The firm's name refers to a fifth wall of technology it provides in addition to the four physical walls of a building. It is part of an emerging category of "PropTech" investors. Major financial backers include large real estate industry companies that agree to be matched with the products and services of the firm's portfolio of start-up companies. The firm has separate funds for investments in emerging retail brands and climate technology to help real-estate companies reduce carbon emissions from their buildings.

Meraas is a privately held holding company headquartered in Dubai with operations and assets in the United Arab Emirates. As of 2020, Meraas was reportedly due to become a subsidiary of Dubai Holding.

Richard Georgi is an American Real Estate Financier and Investor.

<span class="mw-page-title-main">Walton Street Capital</span>

Walton Street Capital is a private equity real estate investment firm founded in 1994 and headquartered in Chicago, with a satellite office in Mexico City. Through its affiliates, Walton Street Capital has raised over $14 billion of equity and loan commitments from a broad cross-section of sophisticated institutional investors including public and corporate pension plans, foreign institutions, insurance companies and banks, FoF managers, endowments, foundations, trusts, family offices, and high net worth individuals. 

References

  1. 1 2 3 4 Cohn, Meredith. "Lowe Enterprises Profits From Patience." Baltimore Sun. June 18, 2000.
  2. ↑ "Lowe Enterprises Wins Trade Group Accolade." Los Angeles Times. June 18, 2002.
  3. 1 2 Vincent, Roger. "Terranea Resort's Main Lender Files Default Notice." Los Angeles Times. August 28, 2009.
  4. ↑ "NAIOP SoCal, the Commercial Real Estate Development Association." Los Angeles Business Journal. April 30, 2012, p. 32.
  5. ↑ Murray, Barbra. "Guardian Life Gives Lowe Enterprises a $200M Shot in the Arm." Commercial Property Executive. July 8, 2010. Accessed 2013-11-26.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.