Broadshore Capital Partners, a national real estate investment management and advisory services company, has formed a $150-million hospitality investment program in partnership with a global alternative investment manager.
Consistent with the company’s long-term approach to opportunistically investing in hospitality properties, Broadshore will invest debt and equity through originating new high-yield financings, acquiring loans and making direct equity investments.
Concurrent with the completion of the joint venture, the partnership closed a $19.8-million mezzanine construction loan to RevPAR Companies for the development of a 200-key AC Hotel by Marriott in Seattle. The new hotel is located in the South Lake Union district, which is a business hub with Amazon, Facebook, Google and the Bill & Melinda Gates Foundation and numerous other corporations in the area.
“We believe the general recovery of the hospitality industry from the pandemic-fueled setbacks present significant opportunities for our new hospitality investment program,” said Brad Howe, CEO, Broadshore. “Broadshore’s experience as a hospitality investor and lender positions us to capitalize on what we view as a sizeable market opening.”
The company has extensive hospitality investment experience, developed over more than 30 years, which it will apply to management of the new investment program, it reports. The partnership will invest nationally and across all hotel asset classes with a focus on asset location, sponsorship and business plan. The venture is targeting loan originations, performing and non-performing loan purchases and hotel acquisitions in the range of $10 million-$75 million.
Leading new originations for the partnership’s hospitality investment program is Broadshore SVP Chris Miller, based in Denver, who has been part of the team responsible for the company’s hospitality acquisition and debt origination programs for approximately eight years.
In addition to the new hospitality investment venture, the company will maintain its existing debt programs, including its direct lending program for commercial real estate asset repositioning or new construction, and its loan acquisition platform.