Driftwood Capital, a vertically integrated commercial real estate firm providing superior risk-adjusted returns in hospitality, has provided $34.8 million in mezzanine financing for the refinancing of Miami Airport Marriott Connection, a Marriott-branded complex with three hotels near Miami International Airport. Through its lending fund, Driftwood Lending Partners, LP, the firm provided financing to an affiliate of Cerberus Capital Management and Highgate.
Driftwood originated a two-year loan with three, one-year extension options at a competitive interest rate.
The loan collateral is comprised of a 371-key full-service Marriott, a 301-key Courtyard by Marriott, and a 164-key Residence Inn by Marriott. Located at 1201 NW LeJeune Rd. in Miami, Florida, the portfolio of properties is found near major entertainment, dining, and transit corridors such as State Road 836 (the Dolphin Expressway) and conveniently less than 10 minutes from Miami International Airport.
“As owner/operators continue navigating capital markets, Driftwood is proud to step in and serve as a source of financing that firms in the hotel industry can rely on,” said Carlos Rodriguez Sr., Chairman & CEO of Driftwood Capital. “The origination of this loan speaks to the level of knowledge and experience exercised by our team to support high-quality assets in outperforming markets.”
Since the Fund’s launch in late 2020, DLP has participated in more than $1.4 billion in financing for high-quality hotels and sponsors across the country. The Fund focuses on providing mezzanine loans and preferred equity for existing hospitality assets, as well as ground-up hotel development projects in the United States.
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 $405 million Westin Cocoa Beach and the $267 million Riverside Wharf/Dream Hotel in Downtown Miami, both in Florida.
About Driftwood Capital
Driftwood Capital is one of the country’s leading hospitality sponsors. A vertically integrated commercial real estate firm with investment, development, lending and management platforms, Driftwood’s unique business model provides accredited investors access to institutional-quality hotel assets or capital solutions on a direct deal basis following deal closing. Since 2015, Driftwood Capital and its principals and affiliates have transacted on more than $5 billion in hospitality assets, including new ground-up hotel development projects, cash-flowing hotels and hotel-backed loans. Driftwood’s in-house team oversees deal sourcing, underwriting, financing, asset management, operations, development and legal issues. For more information, visit www.driftwoodcapital.com.
