Cushman & Wakefield announced today that it served as the exclusive advisor to an affiliate of Lowe Enterprises Investors, a national real estate investment manager, in arranging up to $33.3 million of non-recourse, floating rate financing secured by the Doubletree by Hilton Hotel Boston - Bedford Glen and the Embassy Suites Chicago - North Shore/Deerfield. The facility includes future funding elements associated with a property improvement plan (PIP) and an earn-out. Financing was provided by CapitalSource.
The Doubletree, a 281-key, leading full-service hotel, is located at 44 Middlesex Turnpike in the desirable I-95 West Boston submarket. The Embassy Suites, a 237-key, all-suite property, is located at 1445 Lake Cook Road in the heart of Chicago's North Shore.
Lowe Enterprises Investors acquired the hotels on behalf of a separate account client during the fourth quarter of 2011. Destination Hotels & Resorts, a wholly owned subsidiary of Lowe Enterprises, assumed management of the hotels following the purchase.
Jared Kelso and Ernest Lee of Cushman & Wakefield's U.S Hospitality Group represented the borrower in arranging the financing.
"There continues to be a misperception that there is limited bridge financing available for hotels that is reasonably priced," said Jared Kelso, a Cushman & Wakefield Managing Director. "However, this financing demonstrates that if there is a strong story, lenders will provide creative debt solutions for borrowers. This transaction will allow Lowe to execute their business plan, enhance asset performance and attract permanent financing at maturity."