BGL Real Estate Advisors Complete Financial Restructuring of the Hilton Garden Inn at Cleveland Hopkins International Airport
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's impact on the hospitality sector.
The sequencing of the restructure included:
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- 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/.
SOURCE Brown Gibbons Lang & Company
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