Alex Rodriguez Is Investing More Than Half A Billion Dollars In Hotels
Since Alex Rodriguez announced his resignation in early 2017, he’s been busy putting his money to work. He appeared on the show Shark tank and made an offer for the New York Mets. But Rodriguez’s biggest focus that he started with during his playing time? Real estate.
Rodriguez works with CGI Merchant Group in the company’s new hotel mutual fund. The company, which will also include New York real estate investment company Maverick Commercial Properties, aims to raise $ 650 million for the acquisition and development of properties at Hilton Worldwide Holdings, Inc.
Rodriguez founded his own real estate investment company Monument Capital Management in 2003. The company has already invested more than $ 800 million in real estate in a dozen states. Now Rodriguez wants to benefit from a market that has been hard hit by the COVID-19 pandemic.
According to CGI, the new fund will invest in hotels and resorts in North America and the Caribbean. Miami, New York City and Seattle will be the main areas of interest. The fund has already bought the Gabriel Hotel, a 129-room hotel in Miami.
Rodriguez, CGI, and Maverick mostly target hotels that don’t have open floor plans or large banquet rooms. These types of properties often depend on large group events in these locations. As a result, these hotels could take even longer to recover, making them a riskier investment.
The biggest problem: Getting other owners to sell their properties. Most don’t sell at a loss, thinking Rodriguez is the same thing. Once the industry recovers, these properties could regain most or all of their prepandemic value. This possibility makes the majority of owners reluctant to get rid of their properties even if they are struggling now.
The 14-time all-star knows he’s playing the long game. He doesn’t expect to get rich overnight. He just hopes he can find some good diamonds in the rough.