A Private Family Office Insights Webinar Featuring Andy Bernard.

Why It Matters

The deal structure combines deep cost basis compression, long‑duration subsidized financing on two assets, and a substantial GP skin‑in, offering investors defensive downside protection with outsized return targets in secondary-city markets. If executed, it could demonstrate a replicable value‑add playbook for converting distressed historic downtown assets into hospitality/residential winners.

Summary

Left Lane is raising a $152 million LP fund (with a $27 million GP commitment, ~15% of equity) to convert five distressed historic office buildings it already owns into luxury hotels and multifamily in Phoenix, Pittsburgh, Providence, Memphis and Savannah. The firm underwrites 60–65% construction leverage (refinanced within six months post-completion) and has achieved favorable financing on one asset; two properties qualify for a federal RIFF program offering 35‑year fixed debt at roughly 30‑year Treasury + 1bp. Left Lane emphasizes a very low acquisition basis (~$80/ft versus a $750/ft greenfield replacement cost), plus $70/ft of grants and historic tax credits, which the sponsor says provides significant downside protection. Targeted returns are about a 3x equity multiple and ~30% project IRR (netting LPs ~2.5x and ~25% IRR).

Original Description

Andy Bernard, Partner and Chief Investment Officer at LEFT LANE. LEFT LANE is a vertically integrated investment manager, developer and hotel brand creator targeting the generational dislocation in the office market, acquiring distressed historic office buildings and transforming them into luxury hotels and multifamily residences in high-growth secondary markets. The strategy is anchored by a cost basis built 30-40% below replacement cost through proprietary off-market deal sourcing, historic tax credits, and two decades of specialized development expertise.

Fund III is targeting a 3.0x MOIC and 30% IRR gross across five assets already under execution. Andy brings 20+ years of hospitality investment experience, including as Head of Development at Equinox Hotels and in structured finance at Morgan Stanley, where he executed over $18 billion in CMBS transactions. He holds an MBA from the Wharton School.