Archive News

19 March 2001

Lend Lease’s Value Enhancement Fund IV Acquires Marriott at the Capitol Hotel in Austin, Texas
New York, NY – March 19, 2001 – Lend Lease Real Estate Investments, Inc. announced today that it has acquired the Marriott at the Capitol in Austin, Texas. The hotel was purchased on behalf of Lend Lease’s Value Enhancement Fund IV, a real estate opportunity fund for institutional investors, from USAA Real Estate Limited Partnership for an undisclosed price.

Located in the heart of downtown Austin, the Marriott at the Capitol is a Class A, full service hotel that includes 365 guestrooms and more than 14,750 square feet of meeting space. Other amenities include a 9,600-square-foot ballroom, a 140-seat full service restaurant, two lounges, health club, indoor pool, gift shop and business center. Built in 1986, the hotel has undergone a full-scale improvement program, including room renovations in 1998 and additional capital improvements.

Michael DeNicola, principal and head of Lend Lease’s Lodging and Leisure group said, “The Marriott at the Capitol was a great opportunity to acquire a Class A hotel property in this strong market. We see significant upside potential through the expansion of Austin’s convention center which will attract new business to the property.”

“The Marriott at the Capitol has experienced remarkable growth since 1993,” said T. Patrick Duncan, senior vice president of real estate operations and investments for USAA Real Estate Co. “We have begun to focus more attention and resources on other asset categories.”

Value Enhancement Fund IV (VEF IV) is the fourth in a series of closed-end, enhanced return real estate investment funds designed to take advantage of inefficiencies at varying stages in the real estate cycle. The acquisition of the Marriott at the Capitol marks the third hotel acquisition for VEF IV. The Fund recently acquired the Doubletree Hotel at National Airport in Arlington, Virginia in January 2001 and the Hyatt Regency in Tampa, Florida in June 2000. Since the inception of VEF I, the series of funds has found value in nearly $2.5 billion in commercial real estate throughout the United States.

The Value Enhancement Fund Series is managed by Lend Lease Real Estate Investments, one of the largest real estate investment managers in the world and a leading U.S. real estate advisor to pension funds.

On a worldwide basis the Lend Lease Group is an integrated real estate funds management and services business comprising funds management, project management and construction and property development. In real estate funds management, Lend Lease provides equity and debt origination and management, in public and private throughout the world. Lend Lease provides project management and construction services in almost 40 countries, usually on a fee for service basis, for a blue chip client base with a high level of repeat business. In property development, Lend Lease has expertise in commercial, retail and complex urban mixed use developments, with a strong retail focus, in Europe, Asia, Australia and the US, utilizing primarily third party capital.

USAA Real Estate Co. has more than $2.5 billion of assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial and hotel properties as well as investments in real estate operating companies.

USAA Real Estate is a subsidiary of USAA, which has been serving military families since 1922 and has become one of America’s leading financial services companies. The association, well known for its exceptional service, offers its 4.5 million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $60 billion.

media