HALL grants $ 56 million construction loan to Colorado Springs Marriott hotel – Commercial Observer
A joint venture quartet of investors and real estate developers incurred $ 55.6 million in construction debt from HALL Structured Finance (HSF) to build a Marriott International, SpringHill Suites and extended stay Element by Westin downtown Colorado Springs hotel, according to information provided by the lender.
The first lien construction loan was granted to a joint venture between Colorado Springs-based developers Olive Real Estate Group, local entrepreneur Colarelli Construction, based in Atlanta Hotel Actions Group and Hotel Operation Services LLC.
Construction on the development began in early 2020, with no loan in place, and was hit by the pandemic. HSF has now stepped in to provide debt to help complete construction and establish the asset for possible permanent financing, according to an HSF representative.
Colorado Springs has experienced tremendous growth as one of the most populous and fastest growing cities in the state, providing visitors with an abundance of outdoor activities, sports and entertainment, as well. as business opportunities, ”said the president of HSF. Mike Jaynes noted. “This hotel development will be Marriott’s first extended stay option in downtown Colorado Springs and will provide guests with access to Marriott’s extensive loyalty program. All of these factors made this project an excellent project to fund. “
Paramount Capital Advisors‘ Jean Pascal, who negotiated the loan, said HSF “stepped up its action in a difficult funding environment to fund this deal, which is testament to its entrepreneurial approach and the viability of the project.”
Construction of the eight-story property will ultimately result in a 136-key SpringHill hotel and a 125-key Element by Westin hotel. There will be common on-site amenities, which include an open-air courtyard with lounge seating that connects them, a fitness center, business center, indoor pool and hot tub, as well as free breakfast offers. There will also be a restaurant on the ground floor, approximately 4,200 square feet of meeting and event space, and a 6,700 square foot rooftop bar and restaurant with views of the city and surrounding area, according to information from HSF and an August 2020 press release from Olive Real Estate which detailed the development.
Hotel Equities will manage the properties, which are slated to open next spring.
Olive Real Estate Director Jim DiBiase said the local company looks forward to delivering the asset over the next few months, providing “unique new accommodations and dining options to our vibrant downtown Colorado Springs community.”
The hotel is located 402, rue Tejon Sud in central Colorado Springs, steps from the new United States Olympic and Paralympic Museum and Weidner field – the new home of the city’s professional football team, the Colorado Springs Laces Football Club – which opened a few months ago. Besides these two sporting attractions, the region is reinforced by other museums, catering offers, shops and a multitude of park spaces. (The town itself is nestled on the southeastern border of the Rocky Mountains.)
Last August, Olive Real Estate said in a press release that it expected the approximately 300,000 square foot asset to open this year as the first Marriott hotel to consolidate the SpringHill Suites and Element brands under one roof.
Mack Burke can be contacted at [email protected].