Dealmaker: JLL Secures $103M in Nashville and New York

JLL, Chicago, secured $102.9 million for a Nashville, Tenn. hotel and a Brooklyn, N.Y. mixed-use development.

Capitalizing on Nashville’s double-digit revenue per available room growth in 2015, JLL arranged $58.6 million in acquisition financing for Hampton Inn & Suites Nashville Downtown on behalf of LCP Nashville Hotel I LLC. Bank of the Ozarks, Little Rock, Ark., provided the loan, which will also fund property renovations.

JLL Executive Managing Director Mike Melody, Executive Vice President Bill Grice and Senior Vice President Jonathan Paine led the debt placement team.

“Nashville’s lodging market has grown tremendously over the past few years and is poised for continued growth,” Paine said. “The hotel is within walking distance to many of Nashville’s prime attractions, which appeals to the 12 million tourists who visit the city annually.”

Grice noted that select-service hotels such as this one in top secondary markets deliver attractive yields as upward RevPAR momentum continues. “Thus, these assets will remain highly sought after by investors and lenders alike,” he said.

The 154-key hotel sits directly across from the new 1.2-million-square-foot Music City Center. It Includes four separate meeting spaces and an indoor pool and LCP Nashville Hotel I LLC plans to add guestrooms to the property.

In New York, JLL secured $44.3 million in acquisition and pre-development financing on behalf of Tavros Development Partners and Charney Construction & Development. Bank of the Ozarks also provided the loan for a 42,000-square-foot fully entitled land assemblage at 263-277 South Fifth Street in Brooklyn.

The owners plan to develop a mixed-use asset on the site. JLL Managing Director Aaron Appel and Senior Vice Presidents Jonathan Schwartz and Mark Fisher arranged the financing.

“Limited office and multifamily development opportunities in Manhattan continue to drive investors and developers to Brooklyn where experienced sponsors are finding opportunities to take advantage of high yields and a lower barrier-to-entry,” Appel said. “This financing allows our client to wisely invest in this trend at an opportune time.”

The mixed-use development will include ground-level retail space as well as office and multifamily space. Located in the Williamsburg submarket, where building permits have more than doubled 2013, the development is one block away from the Marcy Avenue subway station.