shaping

excellence

Distressed Commercial Real Estate. Repositioned for Strategic Capital.

Avālia Capital Partners is a private investment platform focused on acquiring discounted commercial real estate assets, with a primary emphasis on hospitality and high-conviction opportunities across the United States.

Explore Our Strategy →

Distressed Commercial Real Estate. Repositioned for Strategic Capital.

Avālia Capital Partners is a private investment platform focused on acquiring discounted commercial real estate assets, with a primary emphasis on hospitality and high-conviction opportunities across the United States.

Explore Our Strategy →

Avālia Capital Partners operates at the intersection of private credit and real estate, targeting distressed owners, not just distressed assets, to unlock value where others cannot.

50

Million

Target Fund Size

Built to capitalize on large-scale distressed opportunities across U.S. markets.

50

Million

Target Fund Size

Built to capitalize on large-scale distressed opportunities across U.S. markets.

1

%

Target IRR

Driven by disciplined acquisition, structured positioning, and market timing.

1

%

Target IRR

Driven by disciplined acquisition, structured positioning, and market timing.

1

Million

Minimum Investment

Designed for sophisticated investors aligned with long-term, high-conviction strategies.

1

Million

Minimum Investment

Designed for sophisticated investors aligned with long-term, high-conviction strategies.

INVESTMENT FOCUS

Where Market Dislocation Creates Opportunity

INVESTMENT FOCUS

Where Market Dislocation Creates Opportunity

View Investment Strategy

CASE STUDIES

Execution in Complex, Off-Market Situations

CASE STUDIES

Execution in Complex, Off-Market Situations

Hilton Atlanta
Hospitality — Atlanta, Georgia
Hilton Atlanta
~67% Below Replacement Cost
Keys1,249
Defaulted Debt~$219M
Foreclosure Credit Bid~$191M
Basis / Key~$153K
Replacement Cost / Key~$467K
Entry Basis~33% of replacement
Institutional-scale hospitality acquired at roughly one-third of the estimated cost to develop a comparable full-service hotel today.
Waldorf Astoria DC
Luxury Hospitality — Washington, D.C.
Waldorf Astoria Washington DC
~76% Below Replacement Cost
Keys263
2022 Purchase~$375M
Reported Debt~$285M
2024 Foreclosure Bid~$100M
Replacement Cost / Key$1.6M+
Entry Basis~24% of replacement
A globally recognized luxury asset experienced a significant capital-structure reset despite the quality and prominence of the underlying property.
Signia Hilton San Jose
Hospitality — San Jose, California
Signia by Hilton San Jose
~68% Below Replacement Cost
Keys541
Late-2024 Appraised~$217M
2025 Foreclosure Value~$80M
Basis / Key~$148K
Replacement Cost / Key~$467K
Entry Basis~32% of replacement
A major full-service hotel transitioned through foreclosure at less than half of its recent appraised value and at roughly one-third of estimated development cost today.
Oakland Marriott
Hospitality — Oakland, California
Oakland Marriott City Center
~70% Below Replacement Cost
Keys500
2025 Foreclosure Acq.~$70.2M
Basis / Key~$140K
Replacement Cost / Key~$467K
Total Replacement Cost~$234M
Entry Basis~30% of replacement
East Bay's largest hotel transferred to its lender at ~half its prior 2017 sale price and at roughly 30% of estimated development cost today.
Hyatt House Pleasant Hill
Extended-Stay — Pleasant Hill, California
Hyatt House Pleasant Hill
~91% Below Replacement Cost
Keys142
2026 Acquisition~$3.3M
Basis / Key~$23K
Replacement Cost / Key~$265K
Total Replacement Cost~$37.6M
Entry Basis~9% of replacement
A distressed extended-stay hotel traded at an exceptionally low basis relative to the estimated cost of developing comparable upscale extended-stay product today.
777 Tower LA
Office — Los Angeles, California
777 Tower
~67%–74% Below Construction Cost
Square Feet~1.02M SF
Transaction Basis~$120M
Basis / SF~$117
Replacement Cost / SF~$360–$450
Total Construction Cost~$369M–$461M
Entry Basis~26–33% of cost
A major Los Angeles office tower traded at a basis materially below the estimated cost of recreating comparable physical improvements.
One North LaSalle
Distressed Debt / Office — Chicago, Illinois
One North LaSalle
~89%–91% Below Construction Cost
Square Feet~494K SF
Outstanding Loan~$74M
Note Acquisition<$20M
Discount to Loan~73%
Debt Basis / SF~$40
Debt Basis vs. Cost~9–11% of cost
The distressed debt position created a deeply discounted path into the capital structure and ultimately to ownership of the underlying real estate.
The LINE LA
Hospitality — Los Angeles, California
The LINE LA
~63% Below Replacement Cost
Keys390
Reported Debt~$106M
Foreclosure Acquisition~$68M
Basis / Key~$174K
Replacement Cost / Key~$467K
Entry Basis~37% of replacement
A major-market hospitality asset changed hands at a basis substantially below the estimated cost to develop comparable full-service hotel product today.

Why Avalia

A disciplined approach to investing — not just capital deployment.

Distressed Opportunity Focus

We target market dislocation driven by capital pressure, not asset quality.

Relationship-Driven Sourcing

Access to off-market opportunities through lenders, brokers, and operators.

Structured Investment Strategy

We prioritize control through debt positions and capital stack alignment.

Capital Preservation First

Every investment is underwritten with downside protection in mind.

Non-Leveraged Advantage

We are not constrained by rising cost of capital like traditional funds.

Institutional Discipline

Every deal is evaluated with rigorous underwriting and execution standards.

Insights

Perspective on Market Dislocation and Opportunity

Insights

Perspective on Market Dislocation and Opportunity

Market Mispricing

Rising interest rates and capital constraints have created pricing gaps across commercial real estate. We focus on identifying mispriced assets where fundamentals remain strong but liquidity has weakened.

Forced Liquidity Events

Loan maturities and refinancing pressure are driving a wave of distressed opportunities. We target situations where capital structure, not asset quality, is the primary challenge.

Selective Market Entry

We concentrate on markets with durable demand drivers, population growth, and long-term economic resilience, allowing us to invest with conviction through cycles.