Case Studies

CASE STUDIES

Holiday Inn Chicago Mart Plaza River North

CHALLENGE:

The sponsors were acquiring a leasehold interest in the Holiday Inn Chicago-Mart Plaza and converting the property to a dual-brand 253-room Holiday Inn and a 268-room voco by IHG. The PIP and conversion will be a transformative value-add renovation that is scheduled to be completed by Q2 2022. APF had to underwrite the transaction with various factors to consider, including the ground lease, substantial renovation component and the impact COVID-19 had on the Chicago market.

SOLUTION:

The loan on the Holiday Inn Chicago-Mart Plaza is backed by world-class sponsorship that has substantial experience not only in the Chicago commercial real estate market, but in repositioning assets similar to this one. The property itself is situated in the heart of downtown Chicago and directly connected to theMART, formerly known as the Merchandise Mart, which consists of 4.0 million-square feet of space. It is clustered within the new 2.3 million square foot Wolf Point Development, which consists of two new, Class-A residential towers and the new 1.2 million square foot SalesForce Tower, which will be delivered in 2023, allowing the Hotel to position itself as the go-to accommodation for all SalesForce Tower visitors upon opening. APF was able to get comfortable with the loan due to the 30-year franchise agreement from IHG and IHG’s commitment to the transaction with key-money. Additionally, APF established an operating and interest reserve to allow the property time to stabilize, as the market continues to recover.

Delta by Marriott, Green Bay, WI

Challenge

The sponsors required a quick turnaround on the refinance of their property. APF had 15 days to underwrite, approve and fund the loan with an impending maturity of late March. In addition to a quick timeframe, the loan also needed to fund just as the COVID-19 pandemic continued to evolve in the United States which added uncertainty as to how much of an impact the health crisis would have on the hospitality industry.

Solution

APF has the utmost confidence in the Sponsor, who has a tremendous amount of experience in the hospitality industry. APF offered the Sponsor a degree of certainty that the transaction would close within the required timeframe; however, APF needed to feel comfortable with the loan closing during this tumultuous time and the Sponsor agreed to an upfront 12-month interest reserve. This allowed both APF and the Sponsor time to get through the pandemic, while also closing on the refinance so they did not enter a maturity default. The loan funded on the terms set forth in the loan application.

Courtyard by Marriott Aurora, CO

Challenge

APF provided the construction financing for the development of the Courtyard by Marriott. The hotel is strategically positioned to take advantage of the Gaylord Rockies Resort and Convention Center in Aurora, which opened in late 2018. Although the Gaylord offers 1,500 guest rooms and 485,000 square feet of flexible meeting, convention, outdoor, exhibit and function space, the owner saw a strong need to have an additional hotel located nearby. The Denver metro area has realized significant growth due to its pro-business environment and subsequent growth in bioscience, aerospace/defense, and renewable energy sectors. The hotel benefits from additional demand from its proximity to Anschutz Medical Campus, the Fitzsimons Life Science District, Buckley Airforce Base, and the largest national solar energy research park.

Solution

The owner selected Access Point Financial (APF) for the development of the hotel because of its previous relationship funding some of the owner’s other projects. Given APF’s deep understanding of the Borrower’s needs and their prior experience with the owner and the proposed brand, APF was able to structure a unique solution to supply the debt in order to meet the owner’s needs.

Results

Because of APF’s ability to provide the required financing for the project, the 140-room Courtyard by Marriott successfully opened in the Denver metro area in 2020. Now that the industry is beginning to recover from the COVID-19 pandemic, the owners will be able to take advantage of the hotels proximity to the Denver International Airport, Gaylord Resort and Convention Center and the Anschutz Medical Campus.

Hyatt Place & Home2 Suites by Hilton Palm Bay

Challenge

The Hyatt Place and Home2 Suites by Hilton are part of a larger mixed-use development that will include two restaurants and three retail buildings within the Palm Bay Executive Park in Palm Bay, Florida. The owner of the site recognized the need for a mixed-use development, including the hotels, as Palm Bay is an area that has experienced growth in tourism, employment and population in recent years. Palm Bay is part of a large and complex area of barrier islands, beach and coastal communities comprising what is known as the Space Coast. The Space Coast is located 45 minutes from Orlando, with notable companies including Lockheed Martin, SpaceX and NASA.

Solution

The owner selected Access Point Financial (APF) for the development of the hotels because its staunch reputation in the industry, as well as the flexible terms offered and ability to close quickly, giving the borrower added certainty that the deal would be executed according to its requirements.

Results

Because of APF’s ability to provide the required financing for the project, the 106-room Hyatt Place and 87-room Home2 Suites by Hilton opened in the Palm Bay Executive Park late spring 2020. With the location of these properties in a leisure destination, the hotels began ramping up even during COVID. The owners expect the summer 2021 to be a tremendous season.

Holiday Inn Evanston

Challenge

Located close to the Central Business District of Chicago, the 159-room, 12-story hotel was built in 1974 to serve as a full-service Holiday Inn. It was then converted to a Best Western, and operated as such until 2015, at which time it was closed for renovations to convert back to a full-service Holiday Inn. Knowing the hotel’s location was in close proximity to the Central Business District of Chicago as well as Northwestern University, the owner recognized an opportunity to convert the Best Western to a Holiday Inn allowing it to better compete in the market. The owner sought financing to convert the hotel and to complete required renovations outlined in IHG’s property improvement plan (PIP).

Solution

The owner turned to Access Point Financial (APF) to assist with funding because of the company’s knowledge and experience in the industry, as well as, a long-established relationship with its Principals. APF provided an FF&E loan for the funds needed to complete the renovation and conversion of the project. FF&E financing can be used to help fund up to 100% of cost for the acquisition of FF&E for the development of new hotel properties or the refurbishment or conversion of existing properties to include soft cost and construction related items. APF was able to structure financing within a few short weeks of application allowing the owner to quickly begin renovations to convert and stabilize the property.

Results

The 159-room full-service Holiday Inn completed renovations in 2016 with facilities and amenities including, a sundry shop, business center, fitness center, outdoor swimming pool, guest self-service laundry facility, 165-seat University Plaza Café, approximately 6,578 square feet of meeting space, and 180± garage parking spaces. The hotel enjoys a prime spot along Chicago’s North Shore, just four blocks away from Lake Michigan and Northwestern University and close to downtown Chicago sightseeing, tours, museums, restaurants and shopping.

Elyton Hotel, Marriott Autograph Collection

Challenge

The Empire Building, what is now be The Elyton Hotel, Autograph Collection, was once part of a four-building site dubbed the “Heaviest Corner on Earth”. In the early 1900’s, this corner consisted of the four tallest buildings in the South and was added to the National Register of Historic Places in 1982. A bank operated a branch on the ground floor of this former office building until it became vacant when the bank moved out in 2009. The owner purchased the property in 2012 with the intent of redeveloping it as a boutique hotel and sought financing to complete the required renovations to convert the building to a Marriott Autograph Collection brand.

Solution

The owner turned to Access Point Financial (APF) because of a long established 10-year relationship with its Principals. APF was able to provide financing to convert the property into a Marriott Autograph Collection. Given APF’s understanding of the Borrower’s needs and their prior experience with the owner and the brand, APF was able to structure a unique solution to supply debt to meet the owner’s objectives to quickly begin renovations, and stabilize the property.

Results

The Elyton Hotel, Autograph Collection is located in the heart of downtown Birmingham’s financial district and opened in the Summer of 2017. Although the Empire Building has been a historic symbol of the South, the new Elyton Hotel, Autograph Collection will restore its historic presence while creating its own new modern identity. The hotel will feature 117 rooms, a gym, lounge, meeting space, restaurant operated by a local award-winning chef, a speakeasy club and a rooftop bar.

The Partridge Inn

Challenge

The Partridge Inn is an iconic landmark hotel that dates from the early 1800’s, when it was a modest two-story private residence. Over the years between 1907 and 1929, the inn expanded several times. After the Great Depression, the asset became a year-round commercial hotel and subsequently an apartment house. The building fell into disrepair after World War II, barely escaping demolition in the 1980’s. Local citizens saved the hotel, thus preserving one of the rich historic legacies of Augusta’s “Hill” section. Located on a pristine hilltop setting in the Summerville district, the Partridge Inn has played host to some of the most notable celebrities and dignitaries of its time. As the closest hotel to the famed Augusta National Golf course, host of the Masters Tournament, “PI” as the locals call it, is “the place to be seen”. In 2015, the owner sought financing to complete the required renovations to convert the building to a Curio Collection by Hilton brand.

Solution

The owner turned to Access Point Financial (APF) because of a long-established relationship with its Principals. APF was able to provide financing to convert the property to a Curio Collection by Hilton. Given APF’s deep understanding of the Borrower’s needs and their prior experience with the owner and the proposed brand, APF was able to structure a unique solution to supply the debt in order to meet the owner’s objectives to quickly begin renovations.

Results

APF provided an interest only bridge loan that allowed the owner to renovate and stabilize the property until which time permanent, long-term financing could be sourced. The Partridge Inn underwent renovations that recaptured the former ambiance and history of this stately, timeless Southern hotel. The Partridge Inn was awarded the Historic Augusta Preservation Award for its updates to the hotel and is a member of the Historic Hotels of America. The hotel features 144 rooms, a fitness center, pool, more than 10,000 square feet of meeting space, restaurant and a rooftop bar.