The Miami and Boston offices of Holliday Fenoglio Fowler, L.P. (HFF) have arranged $75 million in senior debt financing for the Radisson Boston Hotel, a 358-room full-service hotel plus 743-space parking garage in the city's Theatre District.
HFF senior managing director and head of HFF's national hotel group Daniel Peek along with senior managing director Riaz Cassum worked on behalf of Northwood Investors to secure the four-year adjustable-to-fixed-rate loan through Wells Fargo Bank. Loan proceeds were used to fund the acquisition and future renovation of the hotel into an independent property.
The Radisson Boston Hotel is located at 200 Stuart St. on the corner of Charles and Stuart Sts. in the Theatre District. The property is within walking distance of Back Bay and the Financial District, as well as two MBTA subway station stops. Originally built in 1972, the 23-story property features a 260-seat bistro and bar (currently leased to Rustic Kitchen), a 120-seat café, 20,000 s/f of meeting space, the 490-seat Stuart Street Playhouse and an 8,000 s/f auditorium.
"Boston is one of the most sought after markets in the lodging investment market due to its consistently high performance of occupancy and RevPAR increases," said Cassum. "In addition, the lack of recent hotel construction financing means that no major supply will come on-line for the next several years, providing a strong platform for rate growth."
Northwood Investors is a privately-held real estate investment advisor founded in 2006 by John Z. Kukral, the former president and CEO of Blackstone Real Estate Advisors. The firm advises on and invests alongside institutional and private clients in a broad range of real estate and real estate-related investment opportunities including single property acquisitions, property development and redevelopment, multi-property portfolio acquisitions, joint ventures, operating companies and public and private securities.
Holliday Fenoglio Fowler, LP (HFF) and HFF Securities LP (HFFS) are owned by HFF, Inc. HFF operates out of 17 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing.