NATIONAL REPORT—GFI Capital Resources Group and Elliott Management Corporation purchased The Parker New York, formerly Le Parker Meridien, and there’s more industry activity. Here’s a closer look:
JV Purchases The Parker New York
Affiliates of Elliott Management Corporation and GFI Capital Resources Group have acquired The Parker New York. The new owners have committed more than $100 million to revitalize the hotel and will add a mix of new luxury residential condominium units, led by designer Thomas Juul-Hansen, who will mastermind the interior finishes. The condos will offer floor-to-ceiling windows and an array of distinctive hotel services and amenities. GFI Capital has previously worked with Elliott in multiple instances, including The Beekman, a Thompson Hotel & Residences, in Lower Manhattan. Hyatt will operate The Parker New York immediately as a Hyatt-affiliated hotel, while GFI Capital prepares the property for its full renovation, expected to begin in 2020. The hotel will remain open during construction, and will be relaunched as the newest flagship Thompson Hotel in 2021.
Lawrence Wolfe and James Kuhn of Newmark Knight Frank represented the sellers on the sale of the property, and their colleagues Jordan Roseschlaub and Dustin Stolly advised the buyer on the financing. GFI Realty Services advised the buyer on the purchase, and the law firm of Kleinberg, Kaplan, Wolff & Cohen P.C. represented the buyer in the acquisition and financing of the property. Greenberg Traurig LLP law firm represented the seller. Acquisition and renovation mortgage financing was provided by Bank OZK.
Driftwood Acquisitions & Development Marks Sale of First Hotel Asset in Portfolio
Driftwood Acquisitions & Development (DAD) has sold the SpringHill Suites Altamonte Springs, a Marriott-branded, 90-key hotel located 10 miles north of Orlando, FL. DAD acquired the asset in 2015 out of receivership, with little renovation needed, as a cash-flowing market play. While maintaining a 10% equity stake in the property, the firm syndicated the remaining 90% of its equity position to individual accredited investors after closing, projecting a 16% internal rate of return. The sale of the asset yielded significantly higher dividends and total returns than those expected at underwriting, and marks the first asset in DAD’s portfolio to complete the full investment cycle. The buyer of the asset will continue to use DAD’s sister company, Driftwood Hospitality Management, as the operator of the hotel, a testament to Driftwood’s management expertise and its view of the asset’s continued success.
Hawkeye Hotels Acquires Third Louisiana Property
Iowa-based firm Hawkeye Hotels acquired the SpringHill Suites Shreveport-Bossier City/Louisiana Downs, a Marriott hotel in Bossier City, LA. This is the company’s third Louisiana property. Hawkeye Hotels also acquired the Hilton Garden Inn in Baton Rouge and the Hotel Modern in New Orleans, which will soon re-brand as a Holiday Inn Express. The transaction was brokered by Avison Young of Toronto.
Sold: Home2 Suites Pensacola, FL
Hunter Hotel Advisors has sold the Home2 Suites Pensacola, FL to Encore Hospitality. General Hospitality Services opened this 106-key hotel in December 2017. The transaction netted $165,000 per key.
HFF Arranges $155M Financing for Development of Two New-Build Projects
HFF has arranged $155 million in construction financing for the ground-up development of two oceanfront hotels in Oceanside, CA. Working on behalf of the developer, S. D. Malkin Properties, the HFF team placed the construction financing with Bank OZK and an East Coast-based institutional investor. The HFF team representing the borrower included senior managing directors Timothy Wright and Scott Hall, director Olga Walsh and analyst Aaron Lapping.