In a joint effort, Driftwood Capital and Berkadia Hotels & Hospitality have secured $47 million in refinancing for Driftwood’s Canopy by Hilton West Palm Beach Downtown. Michael Weinberg and Scott Wadler, managing directors, Berkadia South Florida orchestrated the financing on behalf of Driftwood Capital.
“West Palm Beach has experienced tremendous growth with several Fortune 500 companies establishing regional headquarters in the market, solidifying its position as the ‘Wall Street of the South,'” said Carlos Rodriguez Jr., president/COO, Driftwood Capital. “We expect these tailwinds to continue to bolster performance as corporate demand accelerates. The Canopy West Palm Beach will be the perfect landing spot for guests looking for a Hilton-branded premium lifestyle accommodation with an elevated food and beverage experience.”
Bank of America provided the three-year, full-term loan, with interest-only and two one-year extension options.
Developed and built in 2020 by Driftwood Capital, Canopy West Palm Beach features 150 guestrooms with views of Downtown West Palm Beach or Palm Island.
“The Canopy is a stunning hotel development where every detail was taken into account,” said Weinberg. “Driftwood’s incredible track record as a developer and owner made this a very competitive process with lenders.”
The hotel is close to the Brightline station, Palm Beach International Airport, the Norton Museum of Art, the Meyer Amphitheater, The Square, Howard Park, the Palm Beach Lake Trail and public beaches.
“West Palm Beach has experienced double-digit growth compared to its pre-COVID performance,” added Wadler. “Palm Beach County is an exciting community that brings together strong industry, world-class tourism and state-of-the-art amenities.”
Hotel amenities include a fitness center, more than 3,000 sq. ft. of meeting space, an outdoor rooftop pool deck and two food and beverage venues.
Driftwood Capital’s investment strategies include hospitality acquisition, development and lending. Properties in its portfolio include the Canopy Tempe and Canopy West Palm Beach; the Wylie Hotel in Atlanta; the Marriott Mission Valley in San Diego; and the Margaritaville Lake of the Ozarks. It is also developing the $388-million Westin Cocoa Beach and the $200-million Riverside Wharf/Dream Hotel in Downtown Miami, both in Florida.
