SPRINGFIELD, MASS. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $24 million loan for the refinancing of Marriott Springfield Downtown, a 266-room hotel that overlooks the Connecticut River in western Massachusetts. Robert Damigella of MMCC originated the five-year loan, which was structured with an interest rate of 6.25 percent, 25-year amortization schedule and a 47 percent loan-to-value ratio. The borrower and direct lender were not disclosed.
OWINGS MILLS, MD. — David S. Brown Enterprises will develop a new, 120-room extended-stay hotel at the Metro Centre at Owings Mills, a transit-oriented development roughly 20 miles outside Baltimore. The Element by Westin hotel will join a high-end, Marriott-branded hotel at the development, which will also feature more than 1,700 apartments; 560,000 square feet of office space; 150,000 square feet of retail space and 5,700 parking spaces upon completion. Crescent Hotels & Resorts will manage the Element by Westin hotel.
DETROIT — Bernard Financial Group (BFG) has arranged a $31 million loan for the construction of a new AC Hotel in Detroit. Dennis Bernard, Dan Duggan, Joshua Bernard and Adam Ferguson of BFG structured the loan on behalf of the borrower, an entity doing business as AC Detroit Holdings LLC. Further details of the transaction were not provided. The AC Hotel chain is under Marriott.
ANCHORAGE, ALASKA — PACE Loan Group (PLG) has arranged $5.5 million in Commercial Property Assessed Clean Energy & Resilience (C-PACER) financing for the Aviator Hotel in Anchorage. The historic hotel, located at 239 W. 4th Ave., is undergoing renovations. Once renovation is complete in 2024, the Aviator Hotel will be a high-end boutique hotel with 252 rooms and suites, a retail store, coffee shop, brewery and a bar and restaurant that will feature a year-round outdoor deck with views of Denali. The C-PACER financing is the largest of its kind to date in Alaska, according to PLG. The loan funds the renovations at the 1970s-era, three-story hotel, including energy conservation measures such as HVAC upgrades, building envelope, water fixtures, lighting and energy-efficient heating. The municipality of Anchorage launched C-PACER in May of 2021, with the first loan closing in August 2022.
BALTIMORE — Method Co. will soon open Roost Apartment Hotel, an 81-unit flexible living community located within the 235-acre Baltimore Peninsula project, which was formerly known as Port Covington. Located at 2460 Terrapin Way, Roost is part of the “Chapter 1” phase of the $5.5 billion Baltimore Peninsula development and is the waterfront project’s third residential property, joining Rye House and 250 Mission. Last week the development team, including Method, Weller Development, MAG Partners and MacFarlane Partners, hosted a ribbon cutting ceremony attended by Maryland Gov. Wes Moore and Sagamore Ventures CEO and Under Armour founder Kevin Plank. The Roost Apartment Hotel concept bridges the gap between a boutique hotel experience and apartment living, with floor plans ranging from one to three bedrooms. The units include features like a full-size kitchen, balconies and full-wall windows. Additionally, Roost will feature an open-air pool, 24/7 concierge and a fitness center with Peloton bikes. The design team for the Roost Baltimore location includes Hord Coplan Macht, Aumen Asner Inc. and Method Studios. Method Co., which operates other Roost-branded properties in Philadelphia, Cleveland, Detroit and Tampa, plans to open the Baltimore Peninsula location on Saturday, July 1.
PLANO, TEXAS — Hospitality investment and development firm Driftwood Capital has acquired the 299-room Hilton Dallas/Plano Granite Park hotel. The accommodations include rooms with queen and king beds, as well as suites. The amenity package comprises a pool, fitness center, business center, grab-and-go mart, two onsite dining options and more than 33,000 square feet of meeting and event space. The new ownership plans to upgrade the guestrooms and meeting space and to assume management of the property. Eastdil Secured represented the seller, Granite Properties, in the transaction.
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Underutilized Hotel Properties Present Conversion Opportunities for Multifamily, Affordable Housing
Walker & Dunlop is finding financial success while helping to provide high-demand, affordable housing in key markets by converting hotel assets into multifamily buildings. Brian Cornell, managing director at Walker & Dunlop Investment Partners (WDIP), says his firm is identifying hotels that are already built out and can accommodate market-rate multifamily use. Extended-stay hotels have the best layout for this type of conversion because their footprint already includes the floor plans and many of the amenities that multifamily residents expect. “The units are typically one-bedroom, but with some two-bedroom suites and studios,” he outlines. “This creates a variety of unit types within the existing physical build-out of the property, and these assets can operate as true multifamily without having to combine walls and do extensive capital renovations.” When it comes to location, Cornell explains, “We prefer infill locations that have strong employment drivers and a dearth of affordable housing.” Underutilized Properties, Multifamily Strategies The three investments Walker & Dunlop has done in the past two years are in the heart of commercial corridors, in areas where there are limited multifamily projects within a two-to-three-mile radius offering rents that can support an 80 percent area median income (AMI) threshold. One is …
MESA, ARIZ. — HALL Structured Finance (HSF) has provided a $19.1 million bridge loan to Khangura Development, the owner of Residence Inn by Marriott Phoenix Mesa East. The newly constructed hotel in Mesa offers 127 suites with modern amenities. It has consistently maintained high occupancy rates due, in part, to its proximity to the Mountain Vista Medical Center, according to the lender. HSF’s loan aims to support the long-term viability of the hotel and secure its permanent financing.
DENVER — A local buyer has acquired the 34-unit Shepherds Motel in Denver for $3 million. The historic motel is located at 1525 Valentia St. It has been family owned and operated since 1994. Barton Thompson and James Few from the Thompson Group at Pinnacle Real Estate Advisors represented both the seller and the buyer in this transaction.
CHARLESTON, S.C. — Arizona-based Arriba Capital has provided a $20 million loan for the construction of Element by Westin, a hotel development currently underway in Charleston. Located at 4865 N. Arco Lane, the property will feature 125 rooms. Amenities will include complimentary breakfast, swimming pool, fitness center, bar, guest laundry room and sundries shop. Contender Development is the borrower and developer.