Who’s buying, selling and financing?

Properties across the country are being sold and financed, including three in Savannah, GA.

HOS Management and Hawkeye Hotels sell three Savannah properties
Hawkeye Hotels and HOS Management have sold three hotels in the Savannah, GA, area totaling approximately $100 million: the Aloft Savannah Airport; Aloft Savannah Historic District; and the Fairfield Inn & Suites Downtown Savannah Historic District.

The Aloft Savannah Airport was purchased by The Montford Group and Opterra Capital, and the Aloft and Fairfield Inn & Suites Savannah Historic District by Mission Hill and KSL Capital Partners. The individual amounts of each sale are publicly undisclosed. The total key count between the three assets was more than 400 rooms. All three of the assets were developed by HOS and Hawkeye Hotels in the last 24 months.

Combined, Hawkeye Hotels and HOS Management have more than 40 hotel projects in the pipeline, with more than a dozen projects starting construction this year. The developers have been actively buying and selling multiple assets in addition to developing new hotels.

“Our top priorities in the next 18-24 months are to continue to actively pursue accretive acquisitions, while strategically disposing of assets,” said Parth Patel, VP, investments, Hawkeye Hotels.

“We look forward to continuing building timeless hospitality assets in the Savannah area to keep up with the increasing demand from leisure and corporate travel that is flowing into our city,” said Kris Patel, president, HOS Management.

“Savannah continues to be top of our list to seek additional development opportunities due to the growth and ample amount of outside commercial investment being made in the last decade,” added Ravi Patel, president, Hawkeye Hotels.

VICI Properties Inc. has first transaction with Cabot
VICI Properties Inc., an experiential real estate investment trust, has entered into a delayed draw term loan facility for up to $120 million and a purchase and sale agreement with Cabot, a developer, owner and operator of destination golf resorts and communities.

The proceeds of the loan facility will be used to fund Cabot’s property-wide transformation of Cabot Citrus Farms in Brooksville, FL, with the addition of a new clubhouse, luxury lodging, health and wellness facilities and a village center. Cabot Citrus Farms will be the first American property in Cabot’s collection of luxury golf and master-planned communities and is expected to open in 2023. Pursuant to the purchase and sale agreement, VICI will convert a portion of the loan facility into the ownership of certain Cabot Citrus Farms real estate assets and simultaneously enter into a triple-net lease with Cabot that has an initial term of 25 years, with five 5-year tenant renewal options. This Cabot Citrus Farms transaction marks the first transaction in the broader Cabot-VICI investment partnership.

“Over the last two years, as we’ve surveyed the global experiential landscape, we’ve become very interested in what we, at VICI, call ‘pilgrimage experiences,’” said Edward Pitoniak, CEO, VICI. “These are recreational, leisure, cultural and other life-enhancing experiences that stand as the pinnacle experiences in their categories. At VICI, we’re determined to become a preferred partner to these place-makers and experience creators. Accordingly, we’re very proud and excited to announce our new partnership with Cabot, one of the world’s leading developers and operators of pilgrimage golf experiences.”

Ben Cowan-Dewar, cofounder/CEO, Cabot, added, “Cabot’s mission is to set the stage for unforgettable experiences in extraordinary places. We are excited about our growth partnership with VICI, which shares the same vision and values, centering on great people making great places that endure for generations. Cabot Citrus Farms is an incomparable opportunity to bring to Florida our approach to golf place- and experience-making. Our golf course and resort village design teams are building on all we’ve learned at Cabot Cape Breton, Cabot Saint Lucia and Cabot Revelstoke.”

PMZ Realty Capital arranges financing for Beachview Club Hotel
PMZ Realty Capital LLC, a national boutique real estate investment banking firm, has secured $30 million in debt and equity for the Beachview Club Hotel, a Tapestry Collection by Hilton property located in Jekyll Island, GA. The proceeds will be used to recapitalize and expand the current footprint.

The 42-room hotel was initially purchased by the sponsor in 2017 when it was renovated into an upscale independent boutique hotel. Plans and permits have been approved by the Jekyll Island Authority to construct an additional 42 rooms on the property.

The Beachview Club Hotel offers guests a private beachfront hideaway along the shores of Jekyll Island. The property is steps away from the ocean and a nine-minute walk from Great Dunes and features an outdoor swimming pool, a shared lounge and garden, a sun terrace and complimentary WiFi.

Hunter Hotel Advisors facilitates sale of urban dual-branded SC property
Hunter Hotel Advisors facilitated the sale of the dual-branded Hilton Garden Inn and Home2 Suites in downtown Columbia, SC. CN Hotels sold the property to an institutional buyer for an undisclosed price. Mayank Patel, SVP, Hunter, advised the seller.

The Hilton Garden Inn and Home2 Suites provide 223 rooms to downtown Columbia, the second-largest city in South Carolina. The property is steps away from the University of South Carolina. The South Carolina State House is four blocks away, allowing the property to capitalize on robust government travel. Built in 2019, the Hilton Garden Inn and Home2 Suites provide amenities, including an indoor pool, fitness center and on-site restaurant.

Black Bear Capital Partners arranges $27.5M financing for Motel 6
Black Bear Capital Partners (BBCP), a real estate financial advisory firm and subsidiary of Black Bear Asset Management, has arranged $27.5 million in hotel financing which includes the acquisition of a corporate-owned Motel 6 hotel in San Jose, CA.

Black Bear Capital Partners Senior Managing Director Suraj Desai arranged both components of the financing package.

The recent transaction includes a one-year, $23.1 million floating-rate, non-recourse loan, with full-term interest-only payments, which represents a 75% LTV, to fund the acquisition of the Motel 6 hotel, totaling 204 keys. The subject property is being sold by Blackstone, a leading global investment firm with more than $230 billion of commercial real estate under management. The borrower is a private investor.

BBCP separately arranged mezzanine financing for the borrower. The one-year, $4.4 million fixed-rate loan structured a portion of proceeds to facilitate the acquisition of the San Jose hotel at 91.6% LTC.

“The property is in a prime location in San Jose,” said Desai, who works out of the BBCP office in Chicago. “Corporate-owned hotel assets are always a great purchasing opportunity for experienced hotel owner-operators. The leveraged one-year loan products will allow our borrower to maximize their equity contribution through cutting operational inefficiencies and increasing value through continued performance ramp up.”

DSH arranges sale of 71-room waterfront hotel
DSH Hotel Advisors, a national hotel brokerage and advisory firm headquartered in Tampa, revealed that Dennis S. Hopper, managing principal and Randy Taylor, VP, investments, arranged the sale of the Red Roof Inn in North Fort Myers, FL, for $5.5 million.

DSH represented the seller, Shivam Sundaram Hotels LLC, and Plantation Realty represented the buyer RNA ALF LLC. DSH held the exclusive listing with the seller and the property was sold publicly—generating 17-plus offers.

The Red Roof Inn in Fort Myers offers a tropical waterfront location, positioned on the banks of the Caloosahatchee River. The hotel is situated within walking distance to several restaurants and a short walk across the Caloosahatchee bridge leads to the downtown area.