CBRE Secures $27M Loan for Minneapolis Hotel
- Jul 21, 2017
After arranging a $14 million loan for the construction of an 81-unit, market-rate community in Boise, Idaho, CBRE Capital Markets’ Debt & Structured Finance secured a $26.9 million, three-year, non-recourse loan for the Elliot Park Hotel, a 168-key hotel by Marriott located in downtown Minneapolis. The company worked on behalf of Wilkinson Corp. Bank of the Ozarks served as the senior lender.
Kraus-Anderson’s redevelopment plan
The eight-story property is named after the Elliot Park neighborhood in which it is located and is part of the Marriott Collection of boutique hotels. Located at Fifth Avenue South and South Ninth Street, the asset is in a developing area on the east side of downtown near U.S. Bank Stadium. The developer’s plan for the project is to be a part of a block of properties that will include its new five-story headquarters, a 17-story apartment tower and a microbrewery from Elliot Park-based Finnegans. The hotel is slated for completion in summer 2018.
Minneapolis-based ESG Architects designed the hotel. Jason Brown and Dan Gable of CBRE’s Indianapolis office, Joel Torborg of CBRE’s Minneapolis office and Jonathan Rice of CBRE’s Atlanta office secured the financing on behalf of the borrower.
“During a period of reduced liquidity from banks for hotel construction financing, our team was able to secure a sizable construction facility from Bank of the Ozarks,” Brown, said in a statement. “Combining our local presence in Minneapolis and hotel financing expertise, we were able to secure a non-recourse loan from a proven capital source during a time of increased volatility and increased banking regulations affecting the construction financing sector.”
Rendering courtesy of CBRE