Driftwood Capital and Berkadia Collaborate on $47 Million Refinance for Full-Service Hotel in West Palm Beach, Florida
Canopy by Hilton West Palm Beach Downtown Primed to Capture Demand in Bustling Location
WEST PALM BEACH, Fla. (September 29, 2023) – In a joint effort, Driftwood Capital, a vertically integrated commercial real estate firm specializing in investment, development, lending, and management, with Berkadia Hotels & Hospitality have successfully secured $47 million in refinancing for Driftwood’s Canopy by Hilton West Palm Beach Downtown. This 150-key, full-service hotel is situated in the heart of West Palm Beach, Fla. Managing Directors Michael Weinberg and Scott Wadler of Berkadia South Florida orchestrated the financing on behalf of Driftwood Capital, a prominent hospitality sponsor headquartered in Miami, Fla.
“We are excited to exchange the in-place mortgage with accretive debt relative to the value of the asset. West Palm Beach has experienced tremendous growth with several Fortune 500 companies establishing regional headquarters in the market, solidifying its position as the “Wall Street” of the South,” said Carlos Rodriguez Jr., President, and COO of Driftwood Capital. “We expect these tailwinds to continue to bolster performance as corporate demand accelerates. The Canopy West Palm Beach will be the perfect landing spot for guests looking for a Hilton branded premium lifestyle accommodation with an elevated food and beverage experience.”
Bank of America provided the three-year, full-term loan, with interest-only and two one-year extension options.
Developed and built in 2020 by Driftwood Capital, Canopy West Palm Beach is located at 380 Trinity Place and features 150 custom-designed and well-appointed rooms with scenic views of Downtown West Palm Beach or Palm Island.
“The Canopy is a stunning hotel development where every detail was taken into account,” said Weinberg. “Driftwood’s incredible track record as a developer and owner made this a very competitive process with lenders.”
Located in the heart of West Palm Beach, it is close to the Brightline station, the Palm Beach International Airport, the Norton Museum of Art, the Meyer Amphitheater, The Square, Howard Park, the Palm Beach Lake Trail, new Class AA offices and public beaches.
“West Palm Beach has experienced double-digit growth compared to pre-COVID performance,” added Wadler. “Palm Beach County is an exciting community that brings together strong industry, world-class tourism, and state-of-the-art amenities.”
The hotel amenities include a state-of-the-art fitness center, more than 3,000 square feet of meeting space, an outdoor rooftop pool deck, and two food and beverage venues: Banter, a 3-course restaurant on the first floor, and Treehouse Rooftop Bar, that serves poolside cocktails and meals with panoramic views from the 13th floor.
Driftwood Capital’s investment strategies include hospitality acquisition, development and lending. Award-winning properties in its portfolio include the Canopy Tempe and Canopy West Palm Beach; the Wylie Hotel in Atlanta; the Marriott Mission Valley in San Diego; and the Margaritaville Lake of the Ozarks. It is also developing the $388 million Westin Cocoa Beach and the $200 million Riverside Wharf/Dream Hotel in Downtown Miami, both in Florida.
Berkadia Hotels & Hospitality 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.