SCOTTSDALE, AZ — Strategic Hotels & Resorts has closed a definitive agreement to recapitalize the Fairmont Scottsdale Princess, a AAA Five-Diamond luxury resort. The company has created a new joint venture with an affiliate of Walton Street Capital, L.L.C. , a private equity real estate investment firm. The two are equal partners in the JV, though Strategic Hotels will serve as managing member. It will also continue to act as the property's asset manager. The recapitalization includes an amendment and extension of the existing CMBS first mortgage debt through the end of 2013. There is an option for a second extension through April 2015, upon satisfaction of certain terms and conditions. Included in the amendment is a $7-million principal payment for the CMBS first mortgage, among other terms and conditions. The JV has also acquired and retired the hotel's $40-million mezzanine debt. The Fairmont Scottsdale Princess' total property debt has been reduced from a total of $180 million to $133 million.
DENVER — Stonebridge Companies has completed its $2-million renovation of the Hampton Inn Lakewood. The renovation included new furnishings and amenities for the hotel's 170 guest rooms, as well as a remodeled lobby and new carpets, wall vinyl, windows and exterior paint. Hampton Inn Lakewood is located at 137 Union Blvd. near west Denver.
MIAMI — Miami-based Aztec Group has arranged a $4.8 million construction loan for the 102-room Comfort Suites Airport/Cruise Port, and a $3.7 million refinancing loan for the 144-room Days Inn Miami Airport North, both in Miami. Jason Shapiro and Boaz Asbel represented the locally based owners of both properties, securing the financing through a local bank.
MELVILLE, N.Y. — Cushman & Wakefield Sonnenblick Goldman has arranged the sale of the 304-room Hilton Long Island/Huntington, located at 598 Broad Hollow Road in Melville, to a joint venture between The Dow Hotel Company and Prudential Insurance Company of America. The hotel will undergo a $15 million renovation, which will include upgraded hotel rooms, corridors, public spaces, HVAC, parking and landscaping. Cushman & Wakefield Sonnenblick Goldman's New York office represented the seller, Melville Hotel Owner 2010.
NEW YORK CITY — Atlanta-based Hodges Ward Elliott (HWE) has represented IFA Hotel Investments (IFA) in the capitalization of the 669-room YOTEL Hotel, located at the intersection of 42nd and 10th in New York City. YOTEL is part of a new billion dollar mixed-use development by Related Companies. The hotel was sold to IFA on a turnkey basis upon completion, which was scheduled from the beginning of the development. Amenities include a restaurant, several bars and lounges, a 5,000-square-foot outdoor terrace, event space and exercise room. HWE sourced $240 million of senior, mezzanine and preferred equity financing, which IFA used to retire the construction loan and acquire YOTEL.
NEW YORK CITY — Norwalk, Conn.-based HEI Hotels & Resorts has sold the 174-room Algonquin Hotel, located at 59 West 44th St. in New York City, in a direct sale for an undisclosed price. HEI will continue to operate the hotel on behalf of its new owner.
MANHATTAN BEACH, CA — Investcorp Real Estate has acquired the 176-room Residence Inn Manhattan Beach. Investcorp has entered into a franchise agreement with Marriott, which includes the Residence Inn brand. The alternative asset manager has created a capital investment plan that will include a new gatehouse, as well as renovations and upgrades to the property's exterior and guest rooms. Total consideration for the acquisition was about $40 million, a large portion of which is capital reserved for the renovation. Morgan Stanley provided the mortgage financing. Interstate Hotels & Resorts, an existing Investcorp operating partner, will continue providing management and operation services for the property.
OMAHA, NEB. — The Element Omaha Midtown Crossing hotel, located in Mututal of Omaha's Midtown Crossing, has received LEED-Silver certification. According to the owner, this makes it the first hotel in Nebraska to be LEED certified. Sustainable features include recycled and low-VOC interior finishes, abundant natural light, recycling bins, low-flow fixtures, energy efficient lighting and appliances, amenity dispensers in guestrooms, reusable guest kitchenware, and the use of filtered drinking water rather than bottled water.
NEW YORK CITY — Los Angeles-based The Gehr Group has acquired the 244-room Four Points by Sheraton Midtown Times Square, located at 326 West 40th St. in New York City, from The Lam Group for $112 million. The Four Points is adjacent to the Fairfield Inn by Marriott Times Square, which The Gehr Group acquired in 2009. The transaction was part of a $170 million portfolio financing secured by both hotels. Cushman & Wakefield Sonnenblick Goldman represented the buyer for the financing.
YORK, PA. — The 124-unit York View Hotel, a distressed asset located in York, has sold for $1.15 million. Joe McCann of Philadelphia-based Optimum Hotel Brokerage represented the seller, a large regional bank.