American Real Estate Partners and Investcorp Close on $176 Million Acquisition of Canal Center in Alexandria, Va

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Oct 24, 2014, 08:00 ET

HERNDON, Va., Oct. 24, 2014 /PRNewswire/ -- American Real Estate Partners, with joint venture partner, Investcorp, today announced the $176 million acquisition of Canal Center, a 540,000 square foot, four-building Class A office complex located on the banks of the Potomac River in Alexandria, VA, minutes from downtown Washington, DC. The Canal Center acquisition is American Real Estate Partners' second investment through its American Real Estate Partners Strategic Office Fund and its fourth in partnership with Investcorp.

American Real Estate Partners with partner Investcorp have closed on the acquisition of Canal Center in Alexandria, VA.

"We are pleased to acquire this very unique asset with our partner, Investcorp," said American Real Estate Partners President, Brian Katz. "The northern Old Town Alexandria submarket has been going through a dramatic redevelopment in the last several years and is one of the few urban mixed-use markets outside of Washington, DC. Alexandria is one of the strongest markets in the Washington metropolitan area and Canal Center enjoys an unparalleled location within the city and the Washington, DC region. Couple this with the extensive capital improvement projects we have planned, and we believe that Canal Center will be one of the best conceived, mixed-use environments in the region."

Canal Center's four buildings were originally developed in 1987 and the complex is currently 83% leased with no major tenant expirations until 2018. Located minutes from Reagan National Airport, Canal Center offers tenants panoramic views of the Potomac River and the Washington, DC skyline through its mirror-glass paneled window systems.

"We are excited to continue our successful partnership with American Real Estate Partners and acquire such a high quality asset in Canal Center," said Herb Myers, managing director in Investcorp's real estate group. "This acquisition adheres to Investcorp's approach of targeting properties located in major metropolitan areas with attractive yields and near-and long-term upside potential."

Complementing Canal Center's stunning location on the river are unique and dramatic public spaces including original sculptures, fountains and landscaping. Just north of the rebuilt original canal lock is "Promenade Classique," a sculpture garden created by Anne and Patrick Poirier, French artists who incorporate archaeological and mythological references in their works. A brick plaza leads to a rectangular pool, a cascading waterfall that leads to twin spiral staircases and a grotto of sculpted ruins overlooking an amphitheater and culminating in a 40-foot high marble obelisk, reminiscent of the nearby Washington Monument.

About American Real Estate Partners
American Real Estate Partners, a vertically integrated institutional real estate investment manager, invests in partnership with a cross section of highly sophisticated domestic and international real estate investors. The firm concentrates on acquiring Class A office, and office flex assets, as well as real estate related financial instruments, in markets throughout the Mid-Atlantic along the Eastern Seaboard of the United States. Since October 2003, American Real Estate Partners has completed 33 acquisitions totaling over 11.5 million square feet, at an aggregate cost of $2.4 billion, representing $825 million of equity, on behalf of its institutional partners. The firm's current portfolio totals approximately 6.6 million square feet. For more information about American Real Estate Partners, please review the firms' website at www.americanrepartners.com, or contact Jon Dishell, Managing Director of Fund Management and Investor Relations at [email protected].

About Investcorp:
Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at June 30, 2014, Investcorp had $11.4 billion in total assets under management. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com.

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KW Communications LLC
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301.661.1448

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SOURCE American Real Estate Partners