CLEVELAND, Aug. 2, 2018 /PRNewswire/ -- BGL Real Estate Advisors (BGLREA) is pleased to announce the closing of construction financing towards the development of the Cambria Hotel Minneapolis – Saint Paul Airport in Bloomington, MN. The hotel project, which is slated to open in August 2019, is a collaboration between Ceres Enterprises, The Orlean Company, BGLREA & Choice Hotels and includes senior construction financing originated by an affiliate of Oz Real Estate.
The hotel will have 170 rooms and is located in a thriving mixed-use retail and entertainment corridor adjacent to Mall of America. The Mall of America currently hosts over 40 million visitors annually and will encompass over 10 million square feet following the completion of its Phase II expansion. Additionally, the Minneapolis – Saint Paul International Airport (MSP) serves almost 40 million passengers annually and is the 16th busiest airport in terms of passenger traffic in the U.S.
The non-recourse, senior construction loan from an affiliate of Oz Real Estate was compelling to the project sponsorship due to the loan structure which contemplates a purchase of the leased fee interest in the property by Oz Real Estate in connection with the project stabilization. It is anticipated that Oz Real Estate may purchase the leased fee interest which would provide a portion of capital required to repay the senior and subordinated construction financing.
"We couldn't be happier to add another strategically located Cambria serving the growing area of Minneapolis and nearby to a major airport, providing a convenient location for guests visiting the Cambria Hotel Minneapolis – Saint Paul Airport," said David Pepper, Chief Development Officer of Choice Hotels." The Crisafi and Orlean families have been important teammates to Choice Hotels over the years and will now add a fourth destination to their Cambria portfolio."
The Brown Gibbons Lang & Company (BGL) team was instrumental in capital sourcing and advising the sponsors on the highly complex structure financed by an affiliate of Oz Real Estate, laying the foundation and creating a template to replicate for new development sites.
David Crisafi, President of Ceres Enterprises, LLC commented: "We have been working closely with BGL for over 3 years on multiple projects; they have proven time and again that their perseverance and tenacity are unmatched in the industry. Their ability to navigate challenges and foresee potential obstacles with multiple groups was critical to closing-out this financing. This is the fourth Cambria Hotel we're developing, but this was by far the most challenging and labor intensive structure to-date, so we were fortunate to have a trusted partner in BGL on our side."
To learn more about BGL's Real Estate Advisors, please visit: www.bglco.com/real-estate
About Cambria Hotels
Cambria® Hotels are designed for the modern traveler, offering guests a distinct experience with simple, guilt-free indulgences allowing them to treat themselves while on the road. Properties feature compelling design inspired by the location, spacious and comfortable rooms, flexible meeting space, and local freshly prepared food and craft beer. Cambria Hotels is rapidly expanding in major U.S. cities, with hotels open in Chicago, New York City, Pittsburgh, Washington, D.C., and Los Angeles. There are more than 35 Cambria properties open across the United States, and over 100 hotels open or in the pipeline in the U.S. and Canada. To learn more, visit www.cambriahotelsandsuites.com.
About Oz Real Estate
Oz Real Estate was founded by Steven E. Orbuch in 2003 to make investments in real estate and real estate related assets across North America and Europe. The principals of Oz Real Estate have invested in over $9.0 billion of private real estate assets, including direct equity investments, preferred equity structures, first lien loans, mezzanine loans, b-notes, ground leases and other credit investments. Oz Real Estate's portfolio has included over 20,000 hotel rooms, over 30,000 multifamily and residential units, and over 20 million square feet of retail and office properties. In addition, Oz Real Estate has developed expertise in certain niche real estate asset classes including gaming, healthcare, senior housing, cellular towers, ski resorts, and land development. Oz Real Estate is currently making opportunistic investments from Och-Ziff Real Estate Fund III, credit investments from Och-Ziff Real Estate Credit Fund, and special situations investments from other capital sources within Oz Management. For more information on Oz Real Estate, please see www.ozm.com.
About Ceres Enterprises & The Orlean Company
Ceres Enterprises is a leading developer and operator of premier hotels in the Midwestern United States whose portfolio includes Marriott, Hilton, and Choice Hotels. The Orlean Company, 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.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Diversified Industrials, Metals & Metals Processing, and Real Estate. BGL has offices in Chicago, Cleveland, Philadelphia, San Antonio, and San Diego in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.
SOURCE BGL Real Estate Advisors
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article