Real Estate
Our Approach
Apollo’s comprehensive Real Estate platform incorporates credit and equity strategies across the real estate landscape. Since Apollo began investing in real estate in 2009, the platform has expanded throughout asset classes, geographies and products, and has successfully navigated market cycles. Our Real Estate team works in close collaboration with all of Apollo’s businesses and utilizes the same value-driven approach to source, underwrite and structure transactions.
With first-call relationships throughout the world with real estate owners, operators, brokers, sponsors and like-minded lenders, Apollo’s Real Estate team offers comprehensive capital solutions for a broad spectrum of properties and combines the strength of the broader Apollo platform with local market experience.
At-A-Glance
$73.8B
AUM
$15.7B
2022 Capital Deployment
120+
Investment Professionals
20
On-the-Ground Presence in Countries
As of March 31, 2024
Integrated platform with access to flexible permanent capital vehicles
Ability to underwrite and structure complex transactions
Access to a comprehensive asset management ecosystem
Value-driven, solutions-oriented approach to investing
Sub-Strategies
Apollo’s commercial real estate credit platform finances global real estate assets on behalf of Apollo’s public and private vehicles. They include our retirement services business, separately managed accounts and Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI), a publicly-traded commercial mortgage REIT.
Key Components
- Fixed and floating-rate first mortgage loans
- Fixed and floating-rate subordinate loans
- Commercial mortgage-backed securities
Apollo’s income-oriented real estate strategies focus on investing in substantially stabilized assets throughout the United States and Western Europe with a medium to long term investment horizon and focus on high-conviction sectors. Our real estate income product in the US is Apollo Realty Income Solutions, a non-traded REIT focused on a combination of stabilized properties and first mortgage loans. We also manage Apollo Diversified Real Estate Fund, a real estate interval fund focused on active management across public and private real estate equity, debt funds and securities.
Key Components
- Stabilized assets in high conviction sectors
- Net lease and core plus assets
- Public and private real estate securities
Apollo’s opportunistic real estate strategies focus on thematic investing in value-add real estate properties and portfolios that have the potential to benefit from active asset management in order to enhance value. We also focus on creating and acquiring sector specific platforms, utilizing our in-house expertise across the firm to scale the businesses. We manage opportunistic real estate private equity strategies in the United States and in Asia.
Key Components
- Value-added or opportunistic real estate properties and portfolios
- Sector specific operating platforms
- Recapitalizations and restructurings of distressed properties
“It’s a business of people, a business of relationships. Collaboration and teamwork is something we do every day.”
Scott Weiner
Head of Apollo's Commercial Real Estate Credit Business
Case Studies
Driving value at a premier, waterfront destination resort
In September 2021, funds managed by Apollo acquired the 309-key Tampa Waterside Hotel, a recently renovated, Westin-branded waterfront hotel with approximately 23,000 square feet of meeting space located in Tampa, Florida. The hotel is centrally located in downtown Tampa and within a 10-minute walk to numerous demand drivers, including the Tampa Convention Center, Amalie Arena and the Riverwalk Boardwalk. Tampa is Florida’s second most populous city with significant demographic growth in the preceding five years. The city represents an outsized beneficiary of Florida’s macro tailwinds, driven by wage, employment, and population growth over the last decade.
Apollo funds and operating partner Newbond Holdings implemented a strategy to drive value creation through revenue and expense management, as well as executing light-touch renovations to unlock further net operating income upside, including the creation of a branded waterfront food and beverage experience.
Low-leverage financing in one of Brooklyn’s last untapped residential markets
In May 2023, Athene originated a $230 million first mortgage to finance the construction of Society Brooklyn and Sackett Place, a to-be-built, two-building multifamily project located in the Gowanus neighborhood of Brooklyn, New York. Once complete, the project is expected to total 517 residential units (including 132 affordable units) as well as ~57,000 square feet of retail space.
The project is located in the heart of the newly-rezoned Special Gowanus Mixed Use District. The neighborhood’s rezoning established the framework for the creation of thousands of new market- and affordable-rate residential units, as well as retail, mixed-use, and creative community spaces. Apollo was able to provide low-leverage, creatively structured financing to capitalize the project, which is expected to be vested into New York City’s 421-a affordable housing program upon its completion.
Related Insights
In a new episode of The View from Apollo podcast, Apollo Chief Economist Torsten Slok speaks with Randy Anderson, a partner in the Real Assets Group at Apollo, about how surging interest rates have contributed to unprecedented conditions in the US real estate market, and what might come next for real estate if rates stay higher for longer.
Real Assets | Investment Insight
Mind the (Funding) Gap: Finding Opportunities in Real Estate Debt Amid Dislocation
Higher interest rates have pressured real estate prices, but fundamentals remain stable across most property types. In this class, Scott Weiner, Global Head of RE Credit, examines the state of the real estate market and discusses the opportunity in RE debt in light of wider spreads, more lender-friendly terms, and significant refinancing needs.
Have you ever wondered which historical figure Boris Olujic would choose to have dinner with? We have too! Check out the latest episode of 9@9 to hear about his dream dinner guest, favorite aspects of the London office and more!
