Recent transactions include Stockdale Capital Partners acquiring The Source Hotel in Denver; Golden Entertainment signing agreements to Sell Rocky Gap Casino Resort in Maryland; and Hall Structured Finance originating a construction loan to finance the development of the ROOST Apartment Hotel in Charleston, SC.
Stockdale Capital acquires The Source Hotel in Denver
Stockdale Capital Partners, a Los Angeles-based real estate investment firm, has acquired The Source Hotel, along with an accompanying 300-stall parking garage and a 17,000-sq.-ft. surface parking lot.
Located in the River North Arts District (RiNO), the hotel is adjacent to downtown Denver and has 100 guestrooms, a full-service rooftop restaurant, 5,575 sq. ft. of event space, a fitness center, a rooftop pool and a business center. The property also features 44,000 sq. ft. of on-site restaurant and retail in its Market Hall I & II locations.
“Stockdale Capital Partners is excited to acquire The Source in the heart of the RiNO district,” said Bill Doak, managing director, hospitality, Stockdale Capital Partners. “The Source’s proximity to restaurants, retailers, breweries, public transit and entertainment venues make it attractive to both locals and hotel guests, and we look forward to building upon its success by making significant investments on the property.”
Stockdale’s plans for The Source include refreshing the guestrooms, reimagining its rooftop restaurant, activating the hotel lobby experience and creating additional revenue drivers in the hotel’s retail space.
Golden Entertainment to sell Rocky Gap Casino Resort for $260M
Golden Entertainment Inc. has entered into definitive agreements to sell Rocky Gap Casino Resort in Flintstone, MD, for aggregate cash consideration of $260 million. Pursuant to the terms of the agreements, Century Casinos Inc. will acquire the operations of Rocky Gap for $56.1 million, subject to customary working capital adjustments, and VICI Properties Inc. will acquire an interest in the land and buildings associated with Rocky Gap for $203.9 million.
The aggregate cash consideration represents a multiple of approximately 10x Adjusted Property EBITDA for the trailing 12-month period ended June 30. The transaction is expected to close in mid-2023, subject to customary regulatory approvals and closing conditions.
“Rocky Gap is a truly unique destination resort, and I want to thank all of our team members who work hard to consistently deliver a premier gaming and entertainment experience to our guests,” said Blake Sartini, chairman/CEO, Golden Entertainment. “Since Golden began operating Rocky Gap seven years ago, we have invested our resources to enhance the property’s amenities and our contributions to the State of Maryland. We are confident that Century Casinos will be a terrific operator of Rocky Gap and strong partner to the community going forward. Strategically, this transaction will enable Golden to focus on the continued success of our operations in core markets. The sale price represents an attractive, premium multiple relative to our current valuation and will provide additional financial flexibility for us to create shareholder value.”
Macquarie Capital is acting as exclusive financial advisor, and Latham & Watkins is acting as legal counsel to Golden in connection with the transaction.
HSF originates $38.7M construction loan for South Carolina ROOST
Dallas-based Hall Structured Finance (HSF) has originated a new first-lien construction loan totaling $38.7 million to finance the development of the 50-room ROOST Apartment Hotel in Charleston, SC. The extended-stay, boutique apartment hotel will be operated by Philadelphia-based Method Co., and is scheduled to open in early 2024.
“This apartment hotel presented an exciting opportunity to provide financing for a unique hotel experience that will blend a luxury boutique setting with an extended-stay lodging offering,” said Donald Braun, president, HSF. “We believe that this hotel will be a great addition to the Charleston Historic District, one of the nation’s most coveted tourism destinations.”
The new property will consist of 52,700 sq. ft. of space comprising a mix of studio, one-, two- and three-bedroom apartment hotel units, a rooftop lounge overlooking downtown Charleston and 27,700 sq. ft. of rentable space. The units are designed with nine-ft. ceilings and open floor plans with artwork, live plants, Bluetooth stereos, fully-equipped kitchens and in-unit washer and dryers. Amenities will include two street-level retail outlets, an open-air courtyard, a fitness center, library, breakfast bar, business center and complimentary bicycles. Method Co. will also operate the property’s rooftop lounge.
Andrew Healy, VP, CBRE, sourced the financing for the project.