D2 Capital Advisors arranged $23.5 million in construction financing for the development of a new Residence Inn by Marriott hotel in Wilmington, DE’s Chestnut Run Innovation & Science Park (CRISP).
The 127-key, 90,0000-sq.-ft. extended-stay hotel is being developed by CRISP Hotel Partners LLC, a joint venture between MRA Group, a developer of life science campuses, and Gulph Creek Hotels, a hospitality developer and operator.
The construction financing was arranged by Philadelphia-based D2 Capital Advisors’ Jack Cortese, David Frankel and John Lightcap. The financing was provided by WSFS bank and Nuveen Green Capital.
Located within the Greenville suburb of Wilmington, the new hotel will be surrounded by an established and growing cohort of corporations. Immediately adjacent is both DuPont and Corteva’s global headquarters. The hotel will also serve various corporations within CRISP, including Prelude Therapeutics, Solenis and Celanese. The hotel benefits from its location in the Brandywine Valley attracting leisure demand related to tourism, sports, and events.
MRA Group acquired the property in December 2021 and began a phased redevelopment of the CRISP campus, which will eventually total more than 1.3 million sq. ft. MRA then partnered with Gulph Creek Hotels for the Residence Inn development and with D2 Capital Advisors to structure the construction financing for the hospitality asset.
“D2’s hotel financing experience and creativity in structuring the capital stack were extremely valuable to us throughout the financing process,” said Phil Butler, EVP/partner, MRA Group. “Their team’s flexibility, determination and understanding of our objectives were significant drivers in D2’s ability to structure the financing in this complex lending environment.”
The capital stack was comprised of senior bank debt, C-PACE, subordinate D-PACE and partner equity.
“Having a strong established sponsor in MRA Group and Gulph Creek Hotels with experience and a track record of success was fundamental in securing hotel construction financing,” said Jack Cortese, VP, D2 Capital Advisors. “Still, the multilayered capital stack presented hurdles that we, the sponsor, and the lenders, were collectively able to overcome and deliver a cost-efficient and flexible financing solution.”
Construction is set to begin this month with a projected delivery date in the summer of 2026. IMC Construction is serving as the construction manager.
