McWhinney acquires Austin Proper; more transactions

Deals are heating up in hospitality. Here’s a look at recent acquisition and financing news:

McWhinney acquires Austin Proper
McWhinney, a national real estate investment, development and management firm with expertise in commercial, multifamily, hospitality, residential and mixed-use assets, has acquired the luxurious Austin Proper Hotel in Austin. Terms of the transaction were not disclosed.

Developed by the Kor Group, the 32-story award-winning Austin Proper Hotel & Residences opened in December 2019 and is located in the heart of downtown Austin’s 2nd St. District, close to Lady Bird Lake and the Austin City Limits music venue. Designed by interior designer Kelly Wearstler, Austin Proper features 244 luxurious rooms and suites, 98 branded residences and more than 14,000 sq. ft. of meeting and event space. The hotel recently earned LEED Gold certification from the U.S. Green Building Council.

Affiliates of Paceline Equity Partners acquire two hotels in Charlotte, NC
Affiliates of Paceline Equity Partners LLC, a Dallas-based private equity manager, have acquired two limited-service hotels in the Charlotte Metro Area, the Holiday Inn Express & Suites Charlotte Ballantyne and the TownePlace Suites Charlotte Fort Mill.

The Holiday Inn Express & Suites Charlotte Ballantyne hotel was built in 2019 and is a 123-room limited-service hotel with amenities including an outdoor pool, meeting space and fitness center. Located in the Ballantyne area of Charlotte, NC, the hotel is situated along Route 521 close to Ballantyne Corporate Park, which is home to a diverse tenant base and is a magnet of corporate activity in the area, including business related travel. The hotel is also expected to benefit from future demand upon completion of construction of the nearby acute care focused Novant Health Ballantyne Medical Center.

The TownePlace Suites Charlotte Fort Mill hotel was built in 2018 and is a 105-room limited-service extended-stay hotel with amenities including a full kitchen in every room, outdoor pool, meeting space and fitness center. Located in the Fort Mill area immediately south of the Ballantyne area, the hotel is also located on Route 521 close to Ballantyne Corporate Park.

Miami Beach Goodtime Hotel Receives $164M in financing
Walker & Dunlop Inc. has structured $164,000,000 in financing for The Goodtime Hotel, located in Miami Beach.

The boutique hotel’s main attraction is the food and beverage offering, which is managed by David Grutman’s Groot Hospitality. Complete with a pool, restaurant and a club with curated DJ performances and live music, the 26,000 sq.-ft. amenity deck is a destination unto itself. With an emphasis on design, generous common spaces, independent branding and superior food and beverage options, the hotel opened to much fanfare in April 2021 and was well-positioned to serve the growing demand for experiential hospitality, with a high volume of booking throughout the summer. The 266-key luxury hotel features approximately 46,000 rentable sq. ft. of ground floor retail as well as 242 parking spaces.

The financing was arranged by Walker & Dunlop’s Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Ari Hirt and Sean Bastian, who identified JP Morgan as the ideal capital source for the financing. The team arranged a three-year, interest-only bridge loan with two one-year extension options on behalf of their client, Dreamscape.