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US Hotel Active Lenders: $20 Million Secured for Charleston Element Construction

Hotel Part of $750 Million Project Near Harvard; Residence Inn in Mesa Gets $19 Million Bridge; and More
Arriba Capital provided $20 million in construction financing for the Element by Westin in Charleston, South Carolina. (Aribba Capital)
Arriba Capital provided $20 million in construction financing for the Element by Westin in Charleston, South Carolina. (Aribba Capital)
Hotel News Now
July 6, 2023 | 12:33 P.M.

This roundup features the latest financing of U.S. hotel industry deals and projects.

Element by Westin

Lender: Hall Structured Finance, brokered by Arriba Capital
Borrower: Contender Development
Location: Charleston, South Carolina
Value: $20 million
Date of Loan: June 21
Takeaway: The construction loan was Arriba's second in a two-week period. The other was a $16.6 million loan for a Hyatt Place in rural Tennessee. The Element, located near the Charleston International Airport, is slated to open in 2025.

Sheraton Tampa Brandon Hotel

Lender: Ready Capital, brokered by JLL Capital Markets
Borrower: Linchris Hotel Corporation
Location: Tampa, Florida
Value: $20 million
Date of Loan: June 21
Takeaway: The 266-room hotel is located nine miles east of downtown Tampa.

Residence Inn by Marriott Phoenix Mesa East

Lender: Hall Structured Finance
Borrower: Khangura Development
Location: Mesa, Arizona
Value: $19.1 million
Date of Loan: June 22
Takeaway: The bridge loan is among an $800 million pool HSF is slated to close in both hotels and multifamily in 2023.

The Sandbar Hotel, Trademark Collection by Wyndham

Lender: HarborOne Bank, brokered by JLL Capital Markets
Borrower: Linchris Hotel Corporation
Location: Myrtle Beach, South Carolina
Value: $7.59 million
Date of Loan: June 29
Takeaway: The loan is the first mortgage refinancing for the 121-room beachfront hotel.

An Unnamed Hotel Near Harvard University

Lender: Otera Capital, brokered by JLL Capital Markets
Borrower: Tishman Speyer
Location: Allston, Massachusetts
Value: $750 million — including other real estate
Date of Loan: June 22
Takeaway: The hotel will be part of the Enterprise Research campus, a 900,000-square-foot, mixed-use development located near Harvard. The loan represents one of the largest constructions loans closed in 2023.

AC Hotel by Marriott

Lender: Brokered by JLL Capital Markets
Borrower: Welcome Group Inc.
Location: Pasadena, California
Value: $36.8 Million
Date of Loan: May 23
Takeaway: The three-year construction loan comes with two one-year extensions. The 194-room hotel is slated to open in 2025.

Soho Beach House

Lender: JPMorgan Chase Bank, N.A. and Citi Real Estate Funding Inc., brokered by Walker & Dunlop
Borrower: Beach House Owner, LLC, a subsidiary of Soho House & Co.
Location: Miami Beach, Florida
Value: $140 million
Date of Loan: May 22
Takeaway: The 10-year, fixed-rate, interest-only loan will repay existing debt, repatriate equity and cover financing and closing costs.

(Corrected on July 6 to specify the lender and broker on the Element by Westin in Charleston, South Carolina.)

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