- Ameriprise Financial plans to exit the U.S. real estate market, winding down Lionstone Investments and divesting $5.5B in real estate.
- Lionstone’s portfolio includes multifamily, retail, office, and mixed-use properties across major cities.
- Leadership tensions and differences between Lionstone and Columbia Threadneedle reportedly contributed to the decision.
As reported in Bisnow, Ameriprise Financial (AMP) will close its U.S. real estate investment arm, Lionstone Investments.
While expected to be financially immaterial to the parent company, this move marks a strategic shift in Ameriprise’s investment priorities.
Key Properties, Transition Plan
Lionstone, which managed approximately $5.5B in institutional assets as of September 2023, will divest a portfolio that includes high-profile properties in major markets such as Houston, Los Angeles, and Washington, D.C.
Lionstone’s holdings include assets such as One American Center in Austin, a property Lionstone has attempted to offload on several occasions, and The James, a Class-A multifamily property in Houston acquired in June.
As Lionstone began transferring its assets to new managers, Ameriprise assured clients of a seamless transition.
Conflicts And Changes
The wind-down follows reports of significant conflicts between Lionstone’s leadership and its parent company, Columbia Threadneedle. Sources close to the situation noted “a lot of points of disagreement” between the two teams.
Leadership departures at Lionstone have been notable, with co-founder Dan Dubrowski leaving in October and two other co-founders, Tom Bacon and Glenn Lowenstein, pursuing independent ventures.
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European Focus
Despite the wind-down, Ameriprise aims to expand its alternative investment options, particularly in UK and European real estate markets, along with hedge funds, collateralized loan obligations (CLOs), and private equity. This refocus indicates Ameriprise’s commitment to diversifying its portfolio beyond domestic real estate holdings.
Founded in 2001, Lionstone was known for its national real estate investment strategies, building a significant footprint in the commercial property market. As Ameriprise exits this segment, the remaining portfolio will be transitioned over several months to new investment managers.
