Mission Capital Advisors Arranges $28.5 Million in Construction Financing for 218-Key Hilton Property in Fort Lauderdale
19-floor building will include two Hilton hotels:
a 106-key Home 2 Suites and a 112-key Tru by Hilton
FORT LAUDERDALE, Fla. (Aug. 10, 2018) — Mission Capital Advisors today announced that its Debt and Equity Finance Team has arranged $28.5 million in non-recourse financing for the construction of a 218-key, Hilton-franchised hospitality property at 315 Northwest 1st Avenue in Fort Lauderdale, Florida. The Mission Capital team of Jordan Ray, Stephen Emery, Ari Hirt, Jamie Matheny and Lexington Henn represented a joint venture of Merrimac Ventures and Driftwood Acquisitions and Development in securing the loan from Bank OZK.
The 19-story property will feature two Hilton-branded offerings. The 106-key Home 2 Suites will be an all-suite facility, featuring an array of in-room and public amenities, including abundant conference and workspace areas and in-room kitchens. The 112-key Tru by Hilton will be designed for young professionals and travelers, and will feature a robust amenity package, including a fitness center, game room and lounge. The two hotels will have separate lobbies, and will each have access to the building’s 102 parking spaces and a 5,000-square-foot outdoor pool deck and bar.
“We’ve done a lot of construction financing for hotels this cycle, but we’ve rarely seen so much lender interest in a deal,” said Ray. “The sponsorship on this property has developed some of the market’s most successful hotels, and they decided to create two Hilton-branded hotels at this property to meet the distinct needs of different market segments. With this financing in hand, construction is already underway, and Fort Lauderdale visitors should be able to enjoy its strong location and amenities by 2020.”
The property is located in Fort Lauderdale’s trendy Flagler Village neighborhood, providing hotel visitors with access to a wide range of art galleries, restaurants and tourist attractions. The hotels will be easily accessible to the beach, Fort Lauderdale International Airport and I-95.
“This deal had a very complex capital stack, including a significant amount of EB-5 financing, but we were able to structure a very strong non-recourse loan for the sponsors,” said Hirt. “The market for construction financing has improved in recent months, and we received a tremendous amount of interest from foreign and regional banks, insurance companies and mortgage REITs. The execution was very strong, and we were able to move the deal in record time, going from term sheet to closing in less than 60 days.”
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.missioncap.com.