A
\npair of New York City-based companies secured the loan to refinance the
\nfull-service hotel in the New York City area. <\/p>\n
NEW YORK
\nCITY \u2014 A pair of New York City-based companies, an affiliate of GFI Capital
\nResources Group, Inc. and Spruce Capital Partners, have secured a $112.5
\nmillion loan to refinance the 287-key Ace Hotel Brooklyn in New York City.<\/p>\n
Walker &
\nDunlop arranged the leasehold bridge loan from New York City-based Torchlight
\nInvestors. Loan proceeds will be used to retire existing senior debt and
\npreferred equity, as well as to fund closing and financing costs.<\/p>\n
Philadelphia-based
\nCorten Real Estate also said it has exited a preferred equity investment made
\nin the hotel as part of the refinance. Corten originally invested in the
\nproperty in February 2021, with funding from both a separate account it manages
\nand Corten Real Estate Fund I LP.<\/p>\n
The Ace
\nHotel Brooklyn offers F&B and event operations along with three fully
\nleased ground-floor retail spaces that are currently occupied. Additional
\namenities include an event space and a ballroom, and a fitness center.<\/p>\n
\u201cNew York is
\none of the most desirable hospitality markets in the country and is positioned
\nfor continued outsized year-over-year growth. Among the Top 25 lodging markets,
\nNew York ranks second nationally in RevPAR growth,\u201d said Stan Spiegelman, COO
\nat GFI. \u201cThe refinancing of Ace Brooklyn positions the hotel and our investors
\nto continue capturing the exceptional growth potential we see across New York
\nCity. GFI\u2019s core investment thesis for the coming years is grounded in our
\nconviction in the continued strength of the New York City hospitality markets,
\nwhich remain a key focus of our capital deployment.\u201d<\/p>\n
\u201cNew York
\nCity remains the most supply-constrained hotel market in the country, driven by
\nsignificant regulatory barriers including the Safe Hotels Act, zoning
\namendments requiring special use permits, and Local Law 18, which restricts
\nshort-term rentals,\u201d said Michael Brown, managing director at Walker &
\nDunlop. \u201cThese factors have limited new hotel development, reduced existing
\nsupply, while tourism demand continues to surge, with more than 64 million
\nvisitors expected in 2025.\u201d<\/p>\n
\u201cGFI\u2019s
\nvision, the Ace brand, and this unique location made the deal compelling from
\nthe outset,\u201d said Brandon Flury, principal at Corten. \u201cWhile the New York City
\nhospitality market has once again proven its resiliency through its post-COVID
\nresurgence, what ultimately made the investment successful was the alignment we
\nhad with our partners on how best to operate and optimize the asset-level
\nbusiness plan. We couldn\u2019t be happier with the outcome and look forward to
\nbeing an accretive, strategic investor alongside GFI and other best-in-class
\noperating partners in the very near future.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A pair of New York City-based companies secured the loan to refinance the full-service hotel in the New…\n","protected":false},"author":2,"featured_media":92581,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[11420,25689,25685,98,100,99,8570,5991,25687,36431,1603,25688,36432,25680,34201,232,9,24,1492,63,25686,25681,36435,25682],"class_list":["post-92580","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brooklyn","tag-asia-pacific","tag-asset-management","tag-brands","tag-brooklyn","tag-brooklyn-headlines","tag-brooklyn-news","tag-caribbean","tag-deals","tag-debt-and-equity","tag-emea","tag-finance","tag-financing","tag-franchising","tag-insights","tag-latin-america","tag-lifestyle","tag-new-york","tag-new-york-city","tag-north-america","tag-nyc","tag-owners","tag-regions","tag-upper-upscale","tag-whats-hot-trending"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/92580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=92580"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/92580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/92581"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=92580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=92580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=92580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}