JHREOP, LLC Secures $100,000,000 Funding Commitment from Five Arrows
Newport Beach, CA, August 18, 2011 – JH Real Estate Operating Partners, LLC (JHREOP) announced today that it has entered into an agreement with Five Arrows Realty Securities V, L.P. (Five Arrows V) under which Five Arrows V has committed to invest up to $100,000,000 in JHREOP.
JHREOP is a Newport Beach, CA based company formed to focus on the acquisition, development and management of primarily multi‐family properties located in Southern California. The principals, Hugo F. Aviles and Gary C. Otto, have been active in multi‐family real estate investments for over 26 years, having acquired in excess of 12,000 multi‐family units totaling approximately $1.0 billion. Since 2005, JHREOP has also purchased approximately 500,000 square feet of commercial space comprised of three shopping centers and 16 acres of land intended for a mixed‐use development in Brea.
Five Arrows V is an investment fund managed by New York‐based Rothschild Realty Managers, LLC, a leading provider of growth capital to public and private real estate companies. As part of this transaction, Five Arrows V representatives John D. McGurk and Justin J. Hakimian have joined the JHREOP Board of Managers, which also includes Messrs. Aviles and Otto.
Under the terms of the transaction, JHREOP will be able to draw funds from Five Arrows V as needed over the next few years in order to expand its portfolio of multi‐family properties. JHREOP will also selectively pursue land sites that are suitable for multi‐family development. All investment activity will be focused in California.
"Because of the meltdown of the financial system and credit markets and ensuing great recession we saw this as a great opportunity to take advantage of the price correction in the commercial real estate market and grow our company and portfolio. Having a supportive capital partner like Rothschild Realty enables us to move quickly to acquire both individual or portfolio assets in California," said Aviles.
"The principals have a long and successful track record as owner/operators of multi‐family properties in California. We believe the JHREOP team has a great opportunity to grow its portfolio and are excited to be able to participate in its future growth," added Justin J. Hakimian, Director, Rothschild Realty Managers.
Ory Schwartz, Senior Director at NorthMarq Capital, LLC advised JHREOP on the transaction.
For further information about JH Real Estate Operating Partners, Five Arrows or the transaction, please contact:
Hugo F. Aviles
JH Real Estate Operating Partners, LLC
500 Newport Center Drive, Ste. 900
Newport Beach, CA 92660
Justin J. Hakimian
Rothschild Realty Managers, LLC
1251 Avenue of the Americas, 44th Fl
New York, NY 10020