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

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.