Closes first transaction, $19.8 million mezzanine construction loan for AC Seattle hotel
LOS ANGELES–Broadshore Capital Partners (Broadshore), a leading national real estate investment management and advisory services company, announced today the formation of a $150 million hospitality investment program in partnership with a global alternative investment manager. Consistent with Broadshore’s long-term approach to opportunistically investing in hospitality properties, Broadshore will invest debt and equity through originating new high-yield financings, acquiring loans and making direct equity investments.
Concurrent with the completion of the joint venture, the partnership closed a $19.8 million mezzanine construction loan to RevPAR Companies for the development of a 200-key AC Hotel by Marriott at 117 Yale Avenue North in Seattle, WA. The new hotel is well-located in the prominent South Lake Union district, which is a vital business hub with Amazon, Facebook, Google and the Bill & Melinda Gates Foundation and numerous other corporations in the area.
“We believe the general recovery of the hospitality industry from the pandemic-fueled setbacks present significant opportunities for our new hospitality investment program. Broadshore’s experience as a hospitality investor and lender positions us to capitalize on what we view as a sizeable market opening,” said Brad Howe, CEO, Broadshore.
Broadshore has extensive hospitality investment experience, developed over more than 30 years, which it will apply to management of the new investment program. The partnership will invest nationally and across all hotel asset classes with a focus on asset location, sponsorship and business plan. The venture is targeting loan originations, performing and non-performing loan purchases and hotel acquisitions in the range of $10 – $75 million.
Leading new originations for the partnership’s hospitality investment program is Broadshore Senior Vice President Chris Miller, based in Denver, who has been part of the team responsible for Broadshore’s hospitality acquisition and debt origination programs for approximately eight years.
In addition to the new hospitality investment venture, Broadshore will maintain its existing debt programs including its direct lending program for commercial real estate asset repositioning or new construction, and its loan acquisition platform.
About Broadshore Capital Partners
Broadshore Capital Partners, LLC (“Broadshore”) was founded in 1989 (under a predecessor name) and became an SEC registered investment adviser in 1991. In 2019 the company rebranded following a buyout led by its long-time partner, The Guardian Life Insurance Company of America. Broadshore is a leading national real estate investment management and advisory services company with approximately $1.76 billion in assets under management as of December 31, 2021. The firm provides real estate advisory services to a select list of international institutions, public pension funds, insurance companies and high net worth individuals. Broadshore is based in Los Angeles with personnel in New York, Denver, Seattle and Phoenix.