Driftwood Capital has secured the $60-million refinancing of the Hilton Cocoa Beach Oceanfront Hotel, a 295-key resort on Central Florida’s Space Coast.
Managing Directors Michael Weinberg and Scott Wadler and Associate Director Alec Fox of Berkadia Hotels & Hospitality secured $60 million in financing through a national bank.
“The Space Coast is experiencing remarkable growth, solidifying its position as a premier multi-segment destination in Florida, catering to leisure, corporate and meeting travelers,” said Carlos Rodriguez Sr., CEO, Driftwood Capital. “Just a 45-minute drive from Orlando, the market benefits from diverse demand generators such as the Kennedy Space Center, Port Canaveral, Patrick Space Force Base and renowned beaches. With the imminent completion of the extensive guestroom and bathroom renovations, the Hilton is poised to become the leading full-service hotel in the region.”
Berkadia arranged a three-year, floating-rate loan with two extension options, full-term interest-only payments and no required depository relationship.
“Upon full funding, the $60-million loan offers substantial value to our investors, providing flexibility in transitioning from a CMBS loan to a balance sheet mortgage,” added Tanya Zapata Sutcliffe, VP, acquisitions, Driftwood Capital. “We anticipate that the best-in-class renovation will empower the Hilton to capture additional market share and capitalize on the growing demand in Cocoa Beach. With our decade-long experience managing the hotel, we’ve positioned ourselves as market leaders ready to leverage our upgraded product.”
The resort is located eight miles from Patrick Space Force Base and six miles from Port Canaveral.
“New supply in Cocoa Beach is virtually non-existent, with extremely strict height and density restrictions preventing any new competition from entering the market,” said Weinberg. “Once the renovation is complete, the Hilton Cocoa Beach will be positioned to be the leading asset in the market, allowing the sponsor to push performance past historical peaks.”
