Financing provided for two South Florida hotels

Madison Realty Capital and ACRES Capital Corp. have provided loans for two hotels in Florida.

Madison Realty Capital provides loan for Miami Four Seasons acquisition
Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, has provided a $105 million loan to Fort Partners for the acquisition and modernization of the Four Seasons Hotel Miami in Brickell, FL. The loan was originated from Madison’s income strategy that offers transitional loans to institutional sponsors. In 2019, Madison provided a $210 million loan to Fort Partners for its construction of the Four Seasons Hotel and Private Residences Fort Lauderdale.

“We are pleased to continue our work with Fort Partners, a best-in-class developer with a strong track record in South Florida, and deliver a timely, customized financing solution for this exciting project,” said Josh Zegen, cofounder/managing principal, Madison Realty Capital. “Fort Partners, in close collaboration with Four Seasons, have put forth a strong plan that will modernize the property focused on enhancing room configurations, pool deck and lobby, and upgrade the food & beverage options by partnering with renowned chefs and restaurateurs. Moreover, Brickell is an attractive, established neighborhood in Miami that caters to both tourists and business clients given its proximity to South Beach. We look forward to supporting Fort Partners in the future.”

Michael Conaghan, partner, Fort Partners LLC, added, “This is our second large loan with Madison Realty Capital, and again they executed quickly and delivered certainty of execution. Madison offered a highly competitive rate with a flexible structure that will allow us to effectively implement our renovation and repositioning plan for this strategic asset.”

The 221-key hotel is part of a 70-story mixed-use tower that includes class-A office space, residential condominiums, an Equinox health club, retail space and a parking garage. Millennium Partners developed the property in 2003 and Handel Architects led the design. The acquisition marks the fourth Four Seasons property in Fort Partners’ Florida portfolio alongside hotels located in Surfside, Fort Lauderdale and Palm Beach.

JLL Managing Director Jim Dockerty, Senior Managing Director Kevin Davis and Managing Director Mark Fisher represented Fort Partners in the deal.

ACRES Capital originates loan to refinance The Ray
ACRES Capital Corp, a commercial real estate middle-market lender, has originated a nearly $86 million loan to refinance The Ray Hotel Delray Beach, a member of the Curio Collection by Hilton brand of hotels located in Delray Beach, FL. The loan is provided to sponsor Menin Development Inc., a real estate development firm that has acquired, developed and remodeled properties worth more than $1.5 billion across the Mid-atlantic and Southeast U.S. The Ray Hotel Delray Beach is in its final stages of construction and is expected to open on Sept. 1.

“With the country’s tourism industry quickly rebounding, Delray Beach remains a popular destination that is sure to be a direct beneficiary,” said Mark Fogel, ACRES CEO/president. “As this beach community continues to attract guests from across the U.S. that are looking to book leisure travel, The Ray will accommodate a variety of travelers as one of the only major new hotels in the city. We are excited to partner with Menin, a strong sponsor that has local expertise, and with a world-renowned, flagship hospitality brand in Hilton to bring the property to life.”

The Ray Hotel Delray Beach, the only Hilton hotel in Delray Beach, will be a 141-key, four-story, full-service property offering a 20,000-sq.-ft. rooftop with an outdoor pool, restaurant and bar, as well as more than 45,000 sq. ft. of indoor and outdoor event space, including a signature, 3,590-sq.-ft. event space called The Cube. Additional F&B outlets will consist of another upscale restaurant, as well as a lobby bar and coffee bar. Other amenities will include a fitness room, valet laundry, shuttle service to the beach and a private beach section for hotel guests.

“The Ray Hotel Delray Beach, Curio Collection by Hilton, will be a signature addition to the evolution of downtown Delray Beach, which is transforming the city into an even more exciting destination for visitors while generating an influx of commercial demand,” said Craig Menin, CEO of Menin Development. “We are thrilled to work with the ACRES team, who were able to provide us with a creative and flexible financing package to support our business plan for the hotel.”

Richard Horowitz of Cooper Horowitz, who arranged the loan, said, “We are pleased to have worked with Menin Development and ACRES to complete The Ray Hotel Delray Beach transaction. The Property will be a significant hospitality asset and will attract many tourists to the area. ACRES enabled Menin’s vision to become a reality, as their team delivered yet again. It has been a pleasure working with Menin and ACRES, and we look forward to working with both parties again in the future.”

The deal was originated by the ACRES team of Drew Miller and James Bracco.

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