Freehand Miami Hotel Lands $21M Refi Deal

MIAMI BEACH, FL—The ownership of the boutique upscale hotel Freehand Miami here has secured a $21-million refinancing deal for the 256-bed property.

The financing transaction was arranged by Mission Capital Advisors of New York City. MCA's Managing Director Jordan Ray, Director Ari Hirt and Associate Director Steven Buchwald represented the sponsor, a joint venture between the Sydell Group, the Yucaipa Companies and AllianceBernstein Real Estate. The art deco designed property is  located in the heart of the Art Deco Historic District at the corner of 28th Street and Indian Creek Drive.

“We arranged the construction financing for this asset several years back when the boutique, high end hostel concept was unproven. Now that the property has been well received by the market, we were able to replace the original, higher cost of capital financing with a very structured interim more appropriately priced 'ramp' loan. The quality of the sponsorship added tremendous value to the assignment,” Mission Capital's Ray says. “We leveraged our depth of capital relationships, our experience in South Florida and our knowledge of complicated hospitality assets to close a highly structured transaction.”

Mission Capital officials say that significant demand for hospitality product in South Florida, combined with a strong capital market are creating an environment where buyers can take advantage of low interest rates and flexible terms.

“The interest we received on this deal is indicative of the strengthening fundamentals in the South Florida hospitality market,” Buchwald says. “We are pleased to continue our success arranging capital in Florida and to champion the financing efforts for the Freehand brand.”