GFI Capital Resources Group, Inc. and Spruce Capital Partners have secured $112.5 million to refinance a 287-room hotel in Brooklyn.
Torchlight Investors supplied the new loan for the property Ace Hotel Brooklyn, which was arranged by Walker & Dunlop. The proceeds will be used to eliminate the existing senior debt and support financing and closing costs. The initial financing was provided by Corten Real Estate.
Walker & Dunlop touted New York City's strong hotel fundamentals, which are supported by scarce development and a surging tourism market that was expected to see more than 64 million visitors last year.
“The refinancing of Ace Brooklyn positions the hotel and our investors to continue capturing the exceptional growth potential we see across New York City," Stan Spiegelman, chief operating officer at GFI, said in a statement.
"GFI’s core investment thesis for the coming years is grounded in our conviction in the continued strength of the New York City hospitality markets, which remain a key focus of our capital deployment. The market is benefiting from a rare convergence of strong macroeconomic tailwinds, sustained expansion within Brooklyn’s hospitality sector, and best-in-class execution by the team at Ace Hotel Brooklyn.
Ace Hotel is located at 252 Schermerhorn Street, at the intersection of Downtown Brooklyn, Fort Greene and Boerum Hill. Subway lines are near the 154,947 square foot property that can get guests to Midtown Manhattan within 30 minutes. Some features at the 13-story hotel include floor-to-ceiling windows, a fitness center, a ballroom and a few eat and drink options on site.
According to Walker & Dunlop, NYC ranks second nationally in RevPar growth, among the top 25 lodging markets.
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