Refinancing and acquisitions continue as the industry continues its recovery from the pandemic. Here’s a look:
Newmark lines up $230M refinance of Edition West Hollywood
Newmark, representing the Witkoff Group, arranged a $230 million refinance of their Edition Hotel along West Hollywood’s Sunset Boulevard. J.P. Morgan and Mack Real Estate Credit Strategies provided the financing.
The 190-key luxury hotel, which serves as the West Coast flagship property for the brand, debuted in 2019, along with Edition Residences. The property is immediately surrounded by some of the world’s premier nightlife and entertainment offerings, as well as some of Los Angeles’ most popular and exclusive restaurants.
The Newmark team on the transaction was led by Dustin Stolly and Jordan Roeschlaub, co-heads of debt & structured finance, along with Senior Managing Director Nick Scribani and associate Dan Morin.
Concord Summit Capital closes $98.39M refinancing for Margaritaville Resort Orlando
Concord Summit Capital LLC arranged a $98.39 million refinancing for Margaritaville Resort Orlando. Starwood Property Trust provided the loan, which refinances the existing construction senior and mezzanine debt and provides additional capital for an expansion of the resort, to Margaritaville’s developer and owner Encore Capital Management.
Encore plans to build 75 additional hotel rooms on the east wing of the resort.
Concord Summit’s Managing Director Kevin O’Grady, Director Justin Neelis and Senior Analyst Daniel Rojo sourced the financing on Encore’s behalf. The company’s principals also arranged the original construction financing for Margaritaville in 2017.
Apple Hospitality REIT acquires Hyatt Place in Greenville, SC
Apple Hospitality REIT Inc. has acquired the 130-room Hyatt Place in downtown Greenville, SC, for a total purchase price of approximately $30 million, or approximately $231,000 per key.
The Hyatt Place Greenville Downtown opened in December 2018. It is near a variety of attractions, including Falls Park on the Reedy, the Peace Center, Bon Secours Wellness Arena, the Greenville Zoo and an array of restaurants, entertainment venues, museums and art galleries. With numerous companies and new ventures located in the Greenville area that span a variety of industries, including manufacturing, technology, financial services, health care, bioscience and distribution and logistics, the hotel is positioned to benefit from a broad range of demand generators. According to data provided by STR, results for the Hyatt Place Greenville Downtown exceeded the company’s full portfolio averages in June 2021, with the hotel reporting occupancy of 79%, ADR of $153 and RevPAR of $121 for the month.
Following this acquisition, the Apple Hospitality portfolio includes 214 hotels with more than 27,900 guestrooms geographically diversified throughout 35 states.
$70M deal in Miami for new Fasano-branded hotel
COMO Metropolitan Miami Beach, formerly the Traymore Hotel, recently sold for $70 million in an off-market deal, equaling nearly $1 million per key. The buyer is JHSF USA Inc. and the seller is Como Traymore LLC.
The property will be renovated and relaunched as a luxury Fasano-branded hotel. The 74-room historic Art-Deco property was renovated with interiors by Italian designer Paola Navone to create a contemporary boutique hotel in a prime oceanfront location. The hotel features a beachfront swimming pool, Traymore by Michael Schwartz restaurant and bar and a rooftop hydrotherapy pool overlooking the Atlantic Ocean.
Susan Gale Group with the ONE Sotheby’s International Realty represented both sides of the transaction.
