Aries Capital Arranges $82 Million in Financing for Florida Hotels
CHICAGO – Aries Capital is pleased to announce that the firm’s Senior Vice President, Jeff Bucaro, has arranged two CMBS loans totaling $82 million on behalf of the Borrower, Innisfree Hotels, for a hotel portfolio in Pensacola Beach, Florida.
The Innisfree portfolio includes a Hilton Hotel and Holiday Inn Resort which are located adjacent to one another in the Gulf Coast community. The Hilton is the only full-service hotel in Pensacola Beach featuring over 30,000 SF of meeting space. The Holiday Inn Resort, only open for 18 months and the first new-construction property for the Holiday Inn Resort brand in the country, earned Innisfree the Intercontinental Hotels Group (IHG) 2011 Developer of the Year Award and the 2012 Quality Excellence Award. Both properties are on land leases.
“Innisfree has an amazing track record for both developing and operating their assets,” said Bucaro, “which contributed heavily to our ability to secure permanent debt at a 9% debt yield on adjacent hotels, especially with limited operating history for one of the assets.”
The financing for the portfolio features a 10-year, non-recourse first mortgage and mezzanine loan with a 30-year amortization and a flexible prepayment option for the mezzanine loan. The recently closed loans represent the fourth and fifth completed by Aries Capital for Innisfree Hotels. Earlier in 2012, the firm closed a $57 million three-asset transaction for a portfolio including multiple properties in the Gulf Coast region.
“Innisfree’s strong reputation for quality and Aries Capital’s financing creativity and relationships combined to solve the Borrower’s financing needs at attractive interest rates,” added Neil Freeman, chairman and CEO for Aries Capital. “Innisfree is committed to the improvement of the Gulf region as demonstrated by the success of their many hotels and resorts along the Coast.”
“I count my association with Aries as one of the difference makers for our company’s success in these difficult times when so many of my colleagues are looking for creative solutions to their capital stack,” said Julian MacQueen, CEO of Innisfree. “In our business we talk about hiring the attitude and teaching the skill, and in this case we hit a home run on both counts.”
Founded In 1985 by Julian MacQueen, Innisfree Hotels (www.innisfree.com) is a “Triple Bottom Line Company” focused on People, Planet, and Profit. Innisfree operates on the principles of fun, relaxation and exceptional service. Innisfree owns and operates major brand hotels and resorts in Gulf Front locations along the Gulf Coast.