Dealmaker: JLL Secures $337M for Two Hotels

JLL, Chicago, secured $337 million from Deutsche Bank and Bank of China USA for two hotels in Miami and San Francisco.

JLL Managing Directors Dustin Stolly and Gregory Rumpel and Senior Vice Presidents Mike Huth and Brett Rosenberg arranged $250 million to refinance 1 Hotel South Beach in Miami on behalf of a joint venture between Starwood Capital Group, LeFrak and Invesco Real Estate. Deutsche Bank provided the loan.

Stolly said 1 Hotel South Beach opened on Collins Avenue in March as the first of three hotels Starwood Capital plans for the “1 Hotel” brand.

“Miami is one of the top performing lodging markets in the country right now,” Rumpel said. “Given its strong fundamentals and numerous demand drivers, many investors and lenders are seeking presence in the market.”  

The hotel totals 426 ocean-view rooms and four elevated swimming pools.

In San Francisco, JLL Senior Vice President Mike Huth, Managing Director John Manning and Executive Vice Presidents Kevin Davis and Alex Witt secured $87 million for the 155-room Loews Regency San Francisco from Bank of China USA.

Loews Hotels converted the former Mandarin Oriental San Francisco to the Loews Regency brand after purchasing the property in April. The hotel joins the Loews Regency New York City in the company’s new Loews Regency Brand.

“San Francisco is an international gateway market with significant barriers to entry and favorable supply-and-demand fundamentals that are driving competition among domestic and international lenders seeking to gain market presence,” Manning said.

Located in San Francisco’s Financial District within walking distance of Union Square and Fisherman’s Wharf, the Loews Regency San Francisco occupies the top 11 floors of the city’s third-tallest building.