Atlantic Equity Partners, a notable real estate private equity name, recently unveiled its ambitious plan to raise $150 million. This fund, known as Fund II, is targeted towards significantly upgrading its portfolio of hotels, with a strong emphasis on energy efficiency and sustainability. This initiative aligns with the growing trend of environmentally conscious investments in the hospitality sector.
The investment group, which already owns prominent properties like the Wainscott Inn in the Hamptons and The Menhaden on the North Fork, has set its sights on redefining the standard for sustainable hospitality. With $25 million already committed to this fund, the firm is making headway toward its target, leveraging the expertise and strategic vision synonymous with its name.
Jonathan Hoenig, Managing Partner & CEO of Atlantic Equity Partners, articulated the firm’s vision with clarity and conviction. “The launch of Fund II is a proud moment that builds on the momentum of our first fund, and it marks a major milestone for our larger impact vision to decarbonize the built environment in a range of assets far wider than hospitality alone,” he states. This statement isn’t just a declaration of intent; it’s a clarion call for the industry to align with the pressing imperatives of the climate crisis.
The firm recognizes the growing consumer demand for businesses that adopt sustainable practices. By repositioning and upgrading their properties, Atlantic Equity Partners is positioning itself at the forefront of a market that increasingly values environmental stewardship.
One of the main strategies involves retrofitting properties with electrified systems and integrating on-site renewable energy generation. This move is expected to slash energy costs dramatically and with a quick payback period, further underscoring the viability of sustainable investments. The Menhaden, a boutique 16-room hotel in the North Fork acquired by the firm in 2021 for $8.25 million, exemplifies their strategic approach. This property and the Wainscott Inn purchased in 2022 for $12.3 million represent the firm’s commitment to transforming hospitality experiences in high-value markets.
Atlantic Equity Partners is making a smart move with their latest project with the world economy slowing down, rising interest rates, and fluctuating commercial real estate values. They aim to acquire exceptional properties at attractive discounts, unlocking immediate value through strategic repositioning and upgrades.
Hoenig is confident about the timing and potential of these investments. He believes that being one of the first to make buildings more eco-friendly will give them an edge. By focusing on properties in high-demand areas and leveraging unique market conditions, the firm is set to create a new benchmark in the hospitality industry.
As the company progresses toward its funding goal, the impact of its vision is likely to extend beyond its immediate portfolio. They’re setting an example for others in property and hotel businesses, highlighting the potential for sustainable practices to drive both environmental and economic value.
Atlantic Equity Partners’ Fund II is more than just an investment venture. It represents a pivotal shift in the real estate industry, where sustainability, innovation, and strategic investment converge. As the firm continues to advance its mission, it is leading the way in the industry. They’re showing that investing in property isn’t just about the buildings themselves; it’s about creating a better, sustainable future.
