ORLANDO, FL – January 14, 2019 – Berkadia’s Hotels & Hospitality team has announced $140 million in combined financing for four hotel properties that are part of FLAMINGO CROSSINGS® Town Center at the western entrance of the Walt Disney World® Resort. The properties include a Residence Inn by Marriott, Fairfield Inn & Suites by Marriott, Home2 Suites by Hilton and Homewood Suites by Hilton. Senior Director Justin Ownby of Berkadia’s Tampa office together with Directors Adrienne Kautzman and Mauricio Rodriguez of Berkadia’s Hotels & Hospitality team arranged the financing on behalf of Doradus Partners. The deal closed on December 11.
The four-year, adjustable-rate, non-recourse construction loan was secured through a direct private lender.
“This was a complex deal with multiple brands and requirements so identifying a lender that could understand its unique elements and accommodate the right structure for ownership took knowledge of active hotel lenders, their constraints and capacity for such a deal,” said Kautzman. “The lender was able to see the long-term value of the projects and recognized Doradus’ experience in the hospitality sector. They were able to provide competitive, non-recourse financing, which was a critical part of the solution.”
The four extended stay hotel properties, which will be managed by Yedla Management Company, Inc., are slated for completion in the fall of 2020. They will offer a total of 997 guest rooms and suites: a 223-room Residence Inn by Marriott; a 273-room Fairfield Inn & Suites by Marriott; a 229-room Homewood Suites by Hilton; and a 272-room Home2 Suites by Hilton along with a structured parking garage, resort style pools and a sports facility that includes a soccer field, basketball court and batting cages.
“These properties represent strong brands in an exceptional location and will offer travelers mid- and upper-tier extended stay options in a setting that is anticipated to also have multiple entertainment, retail and dining options of its own,” said Ownby. “Walt Disney World attracts millions of visitors every year, and, with constantly evolving attractions, entertainment and experiences, this demand will only continue. This deal should provide great value for the long term.”
FLAMINGO CROSSINGS® Town Center is a new master-planned development that includes retail, dining and hotels that will cater to resort guests, area vacation-home owners, and Horizon West residents. At the heart of the mixed-use project will be an approximately 200,000-square-foot retail hub anticipated to consist of a compelling mix of over 50 new offerings and more than 1,700 parking spaces.
Berkadia’s Hotels & Hospitality group combines best-in-industry innovation, knowledge and experience with the most comprehensive suite of products and services, backed by relentless customer service and support to empower clients to capitalize on the right opportunities at the greatest value. The group serves clients across the country, offering a full set of advisory, investment sales, underwriting and loan origination services and products including Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services.