HREC Capital Markets Group, the dedicated capital markets team within HREC Investment Advisors, is pleased to announce it has successfully arranged $165 million in first mortgage financing for a portfolio of seven hotels owned by affiliates of the Hollywood, Florida-based hotel developer AD1 Global (“AD1”).
The portfolio is anchored by the 284-key Aloft/Element Orlando International Drive dual brand hotel developed by AD1 and opened in March 2021. The balance of the portfolio features Hyatt Place, Home2 Suites, Crowne Plaza, Holiday Inn, Staybridge Suites, and Tapestry by Hilton flagged hotels.
The loan was funded by a global investment management firm and features a 5-year term, interest only, and provides for partial release of collateral prepayable at par.
The refinancing allowed AD1 to consolidate seven separate bridge/construction loans into one facility, fund capital improvements, and pay off subordinate debt.
Loan sourcing and negotiations were led by Greg Porter, Senior Vice President of Capital Markets in HREC’s San Diego California office, and Paul Sexton, Senior Vice President, located in the Orlando, Florida office.
“We are pleased to have sourced an elegant financing solution for our client in the midst of a challenging market for hotel refinancings. AD1 Global has built an impressive portfolio of Florida hotels by way of shrewd value-add acquisitions and ground-up developments in durable markets and are now poised for continued growth as we emerge from the pandemic,” stated Greg Porter.
“I expect that the new debt facility has freed up a lot of executive time at AD1, which allows them to do what they do best – which is to acquire, develop and operate hotels,” added Paul Sexton.
About HREC®: HREC® is the nation’s leading lodging and gaming real estate advisory firm specializing in property sales, mortgage brokerage, equity/JV structuring, consulting including market studies, and litigation support. With offices throughout North America, HREC® is distinguished by unwavering commitment to client service and success through its team approach, intellectual capital, and hotel/casino specialization.
About AD1 Global: AD1 Global is a fully integrated privately held hospitality company located in sunny Hollywood, Florida. We excel in all facets of the hospitality industry, ranging from strategic acquisitions and new developments to renovations and management services in order to increase profitability through strategic partnerships. AD1 Global offers complete and comprehensive hotel solutions tailored to the specific needs of the property. Our goal is to continuously improve the work process resulting in highly profitable hotels. We work with hotel owners, financial institutions, and investors to develop successful strategies and action plans. VISIT OUR WEBSITE: www.ad1global.com
