NATIONAL REPORT—Hotel companies continue to seek loans for developments and portfolios during the coronavirus pandemic. Recent deals involve Knighthead Funding LLC and Kennedy Funding. Here are the details:
Knighthead Funding Provides Loan to Finance Development of Boutique Hotel
Knighthead Funding LLC has provided King & George Street LLC with $30.5 million in short-term first mortgage debt for the development of Roost Charleston, a luxury full-service boutique hotel and 11,003 sq. ft. of retail space in Charleston, SC.
Knighthead’s non-recourse, floating rate loan has a term of 27 months. It is Knighthead’s first financing in South Carolina.
The property’s location in the Historic District, where accommodations are in continual high demand, is a strong indicator of the project’s long-term viability, according to Brian Sullivan, Knighthead’s VP of loan originations.
“The Charleston market benefits from a variety of tourist and leisure attractions in the area, creating a year-round need for lodging,” said Sullivan. “We were impressed with sponsorship, which has a proven track record with this property type, having successfully developed several similar hotels in Philadelphia.”
Kennedy Funding Closes Land Loan In Tuscaloosa, AL
Kennedy Funding has closed a $2.75-million loan to SLH Tuscaloosa LLC. The borrower will use the proceeds toward the $5.5-million purchase of 38.7 acres of raw land along the northern banks of the Black Warrior River, which runs through Tuscaloosa, AL.
According to Kevin Wolfer, CEO and president of Kennedy Funding, the borrower plans to construct a 120-room Southern Living-branded hotel, along with 32 cottages available for individual sale.
According to the developer, the 124,000-sq.-ft. complex will include a restaurant and fourth-floor rooftop lounge, developed by James Beard award-winning chef Chris Hastings; an event space for wine tastings and cooking tutorials; and The Greater Southern Bakery and Coffee House that features recipes from Southern Living Magazine.