BOSTON—The developers of the 330-room Aloft Hotel and the 180-room Element Hotel being built adjacent to the Boston Convention and Exhibition Center in the city’s Seaport District have secured $97 million in construction financing with RBS Citizens and Santander Bank, N.A.
The construction loan deal was announced by HFF, which placed the 42-month construction loan with the two lenders on behalf of a venture between Ares Management LLC and CV Properties LLC.
Starwood Hotels & Resorts Worldwide, which will operate both properties upon completion, announced the launch of construction on the two hotel developments earlier this month.
The HFF debt placement team representing the borrower was led by Managing Director Anthony Cutone and Senior Real Estate Analyst Alan Suzuki. The Citizens team was led by Kevin Boyle, Chris Robie and John Fahy. The Santander team was led by George Brockman, director of commercial real estate, and Pete Olivier, senior commercial real estate banker.
“The development of the Aloft and Element Hotels will add more than 500 hotel rooms to the immediate BCEC area, providing a degree of relief to the undersupplied Boston hotel market and allowing the Boston Exhibition and Convention Center to more effectively compete for convention business,” says HFF’s Cutone.
“We are excited to be able to play a continuing role in the growth of Boston’s Seaport District. We have partnered with developers to finance other projects in the area including 100 Northern Avenue and Waterside Place and are very pleased to be able to work on the projects that are changing the face of this part of Boston,” says Gary Magnuson, head of commercial real estate for RBS Citizens.