Deals and financing heat up
Transactions and financing are on the rise as the hospitality industry continues on its way back from the pandemic. Here’s a look:
Mumford Company completes sales of multiple properties
Mumford Company, a full-service hotel advisory firm since 1978, announced today it completed the sale of three properties, including the Best Western Plus Regency Park, Walker, LA; Sleep Inn & Suites Evergreen, AL; and the Holiday Inn Express & Suites Jackson—Flowood, MS.
A lender-owned property, the 63-room Best Western Plus, sold at asking price and closed in less than 90 days. The 56-room Sleep Inn & Suites garnered half a dozen offers, with the winning offer including a substantial non-refundable deposit, and closed in less than 100 days due to great cooperation between all stakeholders in the transaction, the company reported.
The 100-room Holiday Inn Express & Suites was the final lodging asset in the sellers’ portfolio and required extensive cooperation between buyer and seller for the assumption of the existing CMBS debt and associated escrow funds.
Ed James and Steve Kirby, managing principals of Mumford Company, were primary brokers for the three transactions.
Stockdale Capital Partners acquires Le Merigot Hotel in Santa Monica
Stockdale Capital Partners, a Los Angeles-based, vertically integrated real estate investment firm, has acquired the JW Marriott Santa Monica Le Merigot.
One of four beachfront hotels in Santa Monica, the 175-room, six-story property has 11 indoor and outdoor event spaces, a full-service restaurant, a patio lounge, 24-hour in-room dining, an outdoor pool with a spa terrace, the Spa Le Merigot, a fitness center and a business center.
Driftwood Capital acquires DC Metro area hotel
Driftwood Capital, a vertically integrated commercial real estate investment, development and lending platform specializing in hospitality, has acquired the Hyatt Regency Fairfax, a 316-key hotel located in the Washington, DC submarket of Fairfax, VA.
The property was acquired for an undisclosed price, and will be managed by Driftwood Capital’s sister company, Driftwood Hospitality Management (DHM), a national hotel operator, and will be rebranded as a Hilton hotel.
The property is a 13-story, high-rise hotel built in 1989. It offers modern oversized-guest rooms, a fitness center, an indoor pool with whirlpool, a full-service restaurant and more than 9,000 sq. ft. of flexible meeting space capable of hosting up to 600 guests and 2,420 sq. ft. of pre-function space.
With this acquisition, Driftwood Capital’s portfolio grows to 21 full-service hotels and seven new ground-up hotel developments.
Driftwood Capital provides $12.79M preferred equity injection for hotels in Napa and Sonoma
Driftwood Capital has provided $12.79 million in preferred equity for a two-hotel portfolio located in the Napa Valley region of Northern California. The investment, which comes behind $41.3 million in senior construction debt, is for the new 135-key Cambria Hotel Sonoma Wine Country in Rohnert Park, and the 90-key Cambria Hotel Napa Valley in Napa, which is scheduled to open this summer.
The sponsors have a total of five Cambria developments in various stages of delivery and development. Driftwood’s investment has a three-year initial term with a one-year extension option.
Driftwood’s Lending Fund originates mezzanine loans and preferred equity investments in the $5 million to $75 million range and then, post-closing, syndicates participation in such opportunities to accredited investors. The Fund has placed more than $40 million of capital in high-quality hotel mezzanine loans and preferred equity investments in 2021.
The Cambria Sonoma opened in August 2020 and features Sam & Mary’s Restaurant & Bar, 1,800 sq. ft. of meeting space, an outdoor heated pool and an outdoor patio with fire pits.
The Cambria Napa is projected to open in July. It will have a full-service restaurant and bar, 1,000 sq. ft. of meeting space, a fitness center and an outdoor heated whirlpool.
Savills arranges sale of two hotels in Bethany Beach
Savills, a global commercial real estate advisory, represented Bethany Boardwalk Group LLC and Bethany Beach Ocean Inn LLC in the disposition of the 112-room Bethany Beach Ocean Suites Residence Inn and the 100-room Holiday Inn Express in Bethany Beach, DE. The properties were acquired by EOS Acquisitions LLC.
The Savills team was led by Marc Magazine, executive managing director and Tom Baker, corporate managing director.
The Bethany Beach Ocean Suites is affiliated with Residence Inn by Marriott. The oceanfront hotel offers resort-like suites, a full-service spa and five meeting rooms.
The Holiday Inn Express Bethany Beach, an IGH Hotel, has a 1,400-sq.-ft. flexible conference space, a business center and sits two blocks from the beachfront.
Dornin Investment Group acquires $195.5M NPL
Dornin Investment Group (DIG), in partnership with an investment fund, acquired a $195.5M non-performing loan secured by a portfolio of 18 separate properties located throughout Southern California. The properties include multifamily, office, retail, hospitality and land located in Los Angeles, San Bernardino County and Orange County.
DIG has successfully acquired performing and non-performing loans since its inception in 2010. The company has acquired both single asset and multi-asset loan portfolios ranging in size from $5 million to now nearly $200 million. The company completed due diligence on this transaction in 11 days and closed start to finish in less than 30 days.
Kevin Mackenzie and John Marshall with JLL Capital Markets advised DIG on the transaction and arranged the financing.
With this latest investment DIG has now completed more than $1 billion in transactions in apartments, office, industrial, retail and hospitality properties and loans throughout California, Arizona, Nevada, Colorado and Texas.
BBCP arranges $24.4M in construction financing for co-branded Marriott property
Black Bear Capital Partners (BBCP), a real estate financial advisory firm and subsidiary of Black Bear Asset Management, has arranged $24.4 million in financing on behalf of Hotel Investment Group for the construction of a dual-branded Marriott hotel in Barstow, CA.
The three-year, $24.4 million fixed-rate loan on behalf of Hotel Investment Group, which represents a 75% LTC, will be used to fund the construction of the 181-key hotel, situated in Southern California’s San Bernardino Valley. Los Angeles-based GreenLake Asset Management LLC was the lender.
The 3.28-acre site is currently cleared and ready for development, and will include a four-story, limited-service, dual-branded lodging facility that is scheduled for delivery on Jan. 1, 2023. Once completed, the hotel will include 181 rooms and will be associated with both the TownePlace Suites brand and the Fairfield Inn & Suites brand.
Additional features and amenities include a breakfast dining area, bar, meeting space, fitness room, outdoor pool, lobby workstation, market pantry, guest laundry room, outdoor patio area and 185 surface parking spaces, all of which will be located on the first floor of the hotel and will be shared by both brands. Guestrooms for both brands will be located on floors one through four.
Suraj Desai, who joined BBCP in February to spearhead the firm’s hospitality advisory practice, arranged the financing package.