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Cronheim Hotel Capital (CHC) has secured a $29.9M loan for the refinance and conversion of the Ocean Coast Hotel to a Holiday Inn Resort, as well as a $20.5M loan for the refinance of the Amelia Hotel, an independent oceanfront property. Both financings originated with a regional bank and include USDA and PACE components.
The Co-Sponsors, Innisfree Hotels and RREAF Holdings, purchased the properties with the intention of significant upgrades including the conversion of one of the unbranded assets to a Holiday Inn Resort. The Sponsors have mastered the value-add beachfront real estate hotel investment, with these two adding to an extensive portfolio across both the panhandle and northeast coast of Florida.
Michael McGuire, Executive Vice President, noted:
“The heavy value add component brought challenges to the financing and required creativity to deliver the best possible option. USDA coupled with PACE enabled over 80% financing that is fully amortizing over 25 years. Once renovated, the Sponsors will control almost all of the hotels on Amelia Island, creating the optimal environment for revenue growth as well as enabling efficiency through operating synergies.”
McGuire further noted:
“The proven track record combined with the depth of expertise of Innisfree and RREAF were key drivers to securing the refinancing. Both Innisfree and RREAF place a heavy focus on their team approach and there was a dedicated team across both organizations helping make this happen. The leadership of John Nowak of Innisfree played a vital role in navigating two sponsorship groups, the USDA, and the PACE lender.”
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About Innisfree Hotels
Innisfree Hotels, founded in 1985 by Julian MacQueen, is one of the largest hotel ownership groups in Florida having a portfolio of 25+ hotels, with almost all of those being beachfront or very close. They have developed or converted nearly the entire portfolio, making Innisfree one of the most experienced value-add hotel investment companies in the nation.
About RREAF Holdings
Founded in 2010 and based in Dallas, RREAF Holdings LLC (“RREAF”) is a privately held, vertically integrated real estate investment and development firm focused on value creation across high-growth U.S. markets, primarily throughout the Sun Belt. The firm specializes in the acquisition, development, and repositioning of complex real estate assets, with a core emphasis on programmatic value-add multifamily investments.
Since inception, RREAF has completed more than 130 transactions and acquired and developed over 23,000 units and keys. The Beachfront Hospitality & Resorts portfolio, RREAF's oldest and second-largest operating platform, includes 12 hotels with over 1,500 keys across four states. In aggregate, RREAF oversees more than 90 assets representing approximately $4.7 billion in assets under management.
Media Contact for RREAF Holdings: RREAF@5wpr.com
Cronheim Hotel Capital
Cronheim Hotel Capital and its affiliate, Cronheim Mortgage, provide debt and equity for a wide array of commercial real estate. The principals of CHC have seven decades of combined experience in commercial real estate capital markets and have completed over $9 Billion of capital transactions. Widely recognized as authorities in the hospitality finance space, they bring unique capital relationships that result in financing options not otherwise available in the market. Primarily, the CHC team is committed to understanding and advancing client needs and exceeding expectations of service and insight. CHC has closed numerous hotel financings from a broad range of capital sources, including its insurance company correspondents, for whom they service a portfolio in excess of $2.0 billion.
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