BGL Real Estate Advisors completes financial restructuring of Hilton Garden Inn at Cleveland Hopkins International Airport

The restructuring sequence included:

1. 1. Negotiating with the CMBS lender’s special servicer to increase its loan
   2. Increase in preferred capital to recapitalize the balance sheet
   3. Repositioning the hotel by financing and implementing a property improvement plan that modernized all 168 rooms and public areas on the ground floor
   4. Closure of the maturing CMBS lender
   5. Refinancing with Access Point to extend the maturity of the senior loan
   6. Creation of additional reserves for strengthened, stabilized operations in the future.

The Hilton Garden Inn at Cleveland Hopkins Airport was originally developed in 1998 by Ceres Enterprises & The Orlean Company. It features a restaurant and lounge, 35,000 square feet of meeting space, an indoor pool, fitness center and pantry. Strategically located off I-480, just north of the airport, the renovated hotel will be the first choice for over 10 million travelers each year and is well prepared to meet the 3 billion US dollars Master plan for Cleveland Hopkins Airport.

“The pandemic presented unprecedented challenges for this hotel and this submarket, but BGL’s advice was of paramount importance to our ownership group as we navigated the disruptions in the capital markets,” said David CrisafyPresident of Ceres Enterprises. From negotiating with the special servicer to raising new capital, BGL has been a true partner in achieving the best possible results. We look forward to our new partnership with Access Point Financial and taking this hotel into the next phase of its lifecycle.”

Ceres Enterprises is a leading developer and operator of world-class hotels in the Midwest, with a portfolio that includes Marriott, Hilton and Wyndham hotels. The Orlean Company is a leading Ohio-based real estate developer with extensive commercial real estate experience, including senior and assisted living, affordable and market-rate multifamily housing, and commercial retail and residential for sale in Northeast Ohio.

Access Point Financial, LLC (APF) is a Atlanta-based direct hospitality lender serving qualified hoteliers across the United States and CanadaAPF’s loan programs are flexible and are typically used for refinancing, construction acquisitions, renovations or branded PIPs, as well as value-add transactions such as asset repositioning, hotel conversions and new construction.

BGL’s Real Estate Advisors team provides comprehensive real estate investment banking services tailored to the middle market. It offers client-focused solutions with a focus on real estate advisory, debt, preferred stock and private equity placements, financial restructuring, recapitalizations, sale-leasebacks, structured finance, and asset purchases and dispositions across all asset classes. The team supports real estate owners and developers seeking to form alliances and joint ventures with capital providers on a one-stop basis to provide local and institutional access for all capital needs.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public companies and private equity groups on mergers and acquisitions, capital markets, financial restructurings, valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, Los AngelesAnd new Yorkand real estate agencies in Chicago, ClevelandAnd San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to serve clients in more than 35 countries worldwide. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, Inc., an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member FINRA and SIPC. For more information, visit https://www.bglco.com/.

Source: Brown Gibbons Lang & Company