MIAMI-The 641-room InterContinental Miami hotel at 100 Chopin Plaza has received $26 million in mezzanine refinancing. The financing was provided by New York City-based Pembrook Capital Management. The loan is a floating-rate indexed off of one-month Libor and matures in October 2008 with three one-year extension options. The financing will be used to repay existing debt.
The 34-story four-start hotel, owned and managed by Strategic Hotels & Resorts and InterContinental Hotels Group, overlooks the Biscayne Bay in the Seaport section of downtown Miami. It is currently undergoing a $15 million renovation to add a health spa and fitness center and make other improvements.
Built in 1982, the hotel is connected to the Miami Center, a 35-story office tower. It is also close to Miami Beach and the Miami Convention Center and a few blocks from Bayside Marketplace and the American Airlines Arena. "It's a good asset in a great location, performing well and managed well," Pembrook Capital Management managing director John Garth tells GlobeSt.com.
While attracted to the property's location, Pembrook Capital was also drawn to its location within a federal Empowerment Zone, which entitles the area to federal economic incentives. The Seaport area was designated an Empowerment Zone since 1999. "The asset being situated in the Gulf Opportunity Zone was yet another positive," Garth says. "First and foremost we look at the attributes of the underlying asset, but if we also follow a socially responsible track, that's an added bonus."
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