CHICAGO - Cushman & Wakefield was exclusive advisor to an affiliate of Lowe Enterprises Investors in arranging up to $33.3 million of non-recourse, floating-rate financing secured by hotels in Chicago and Boston.
The Doubletree by Hilton Hotel Boston-Bedford Glen and the Embassy Suites Chicago–North Shore/Deerfield secured the loans provided by CapitalSource.
The financing facility includes future funding elements associated with a property improvement plan and an earn-out.
The Doubletree, a 281-key full-service hotel, is located at 44 Middlesex Tpk. in the I-95 West Boston submarket.
The Embassy Suites, a 237-key all-suite property, is located at 1445 lake Cook Rd. along Chicago's North Shore.
Lowe Enterprises acquired the hotels on behalf of a client in the fourth quarter of 2011. Destination Hotels & Resorts, a wholly owned subsidiary of Lowe Enterprises, assumed management of the hotels after the purchase.
Jared Kelso and Ernest Lee of Cushman & Wakefield's U.S Hospitality Group represented the borrower in arranging the financing.
"There continues to be a misperception that there is limited bridge financing available for hotels that is reasonably priced," Kelso says in a press release. “However, this financing demonstrates that if there is a strong story, lenders will provide creative debt solutions for borrowers."
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