CLEVELAND, Aug. 19,
2024 /PRNewswire/ -- Brown Gibbons Lang &
Company (BGL) is pleased to announce the closing of bridge
financing with Access Point Financial, LLC (APF) for the 168-key
Hilton Garden Inn at Cleveland Hopkins International Airport, on
behalf of the hotel's owners, Ceres Enterprises and The Orlean
Company.
This refinance successfully concludes the
financial restructuring this hotel was forced to undergo due to the
pandemic.
This refinance successfully concludes the financial
restructuring this hotel was forced to undergo due to the
pandemic's impact on the hospitality sector.
The sequencing of the restructure included:
-
- Negotiating with the CMBS lender's Special Servicer on a
bring current of their loan
- Raising preferred equity to recapitalize the balance
sheet
- Repositioning the hotel by funding and completing a Property
Improvement Plan that modernized all 168 rooms and ground floor
public spaces
- Retiring the maturing CMBS lender
- Refinancing with Access Point to extend the senior loan's
maturity date
- Establishing additional reserves for heightened future
stabilized operations.
The Hilton Garden Inn at Cleveland Hopkins Airport was
originally developed by Ceres Enterprises & The Orlean Company
in 1998. It features a restaurant and lounge, 3,300 square feet of
meeting space, an indoor pool, a fitness center, and a market
pantry. Strategically located along I-480, just north of the
airport, the renovated hotel will be poised to be the top lodging
choice for over 10 million travelers annually, as well as primed to
service the $3 billion Cleveland
Hopkins Airport master plan.
"The pandemic presented unprecedented challenges for this hotel
and submarket, but BGL's advisory was paramount to our
ownership group as we navigated the disruptions in the capital
markets," said David Crisafi,
President of Ceres Enterprises. From negotiating with the Special
Servicer to sourcing new capital, BGL operated as a true partner to
deliver the best possible outcomes. We look forward to our new
partnership with Access Point Financial and ushering this hotel
into the next phase of its lifecycle."
Ceres Enterprises is a leading developer and operator of
premier hotels in the Midwestern United States whose portfolio
includes Marriott, Hilton, and Wyndham Hotels. The Orlean
Company is a leading Ohio-based
real estate developer with extensive ground-up commercial real
estate experience, including senior and assisted living care
housing, affordable and market-rate multifamily housing, and
commercial retail and for-sale housing in Northeast Ohio.
Access Point Financial, LLC (APF) is an Atlanta-based direct hospitality lender that
provides bridge, PIP, capex, construction, and mezzanine/preferred
equity financing to qualified hoteliers throughout the United States & Canada. APF's loan programs are flexible and
are typically used for refinancing, construction take-out,
renovations or brand-mandated PIPs, and value-add transactions,
such as asset repositioning, hotel conversions, and ground-up
construction.
BGL's Real Estate Advisors team offers comprehensive real estate
investment banking services tailored to the middle market. It
provides client-focused solutions with an emphasis on real estate
advisory, debt, preferred and private equity placement, financial
restructuring, recapitalizations, sale-leasebacks, structured
finance, and asset acquisitions and dispositions across all asset
classes. The team assists real estate owners and developers looking
to form alliances and joint ventures with single-source capital
providers to gain local and institutional access for all capital
needs.
About Brown Gibbons Lang & Company
Brown Gibbons
Lang & Company (BGL) is a leading independent investment bank
and financial advisory firm focused on the global middle market.
The firm advises private and public corporations and private equity
groups on mergers and acquisitions, capital
markets, financial restructurings, valuations and
opinions, and other strategic matters. BGL has investment
banking offices in Chicago,
Cleveland, Los Angeles, and New
York, and real estate offices in Chicago, Cleveland, and San
Antonio. The firm is also a founding member of Global
M&A Partners, enabling BGL to service clients in more than 35
countries around the world. Securities transactions are conducted
through Brown, Gibbons, Lang & Company Securities, Inc., an
affiliate of Brown Gibbons Lang & Company LLC and a registered
broker-dealer and member of FINRA and SIPC. For more information,
please visit https://www.bglco.com/.
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SOURCE Brown Gibbons Lang & Company