LOS ANGELES–(BUSINESS WIRE)–Broadshore Capital Partners (Broadshore) announced today that it has closed a $23 million mezzanine loan to Maven Real Estate Partners for the redevelopment of the 26-story Rand Tower into a 277-room Tribute by Marriott hotel in downtown Minneapolis. Rand Tower is an historic Art Deco office building with an unparalleled location in the heart of the city at 527 S. Marquette Avenue.
“Broadshore’s deep experience in hospitality assets, as both an equity investor and lender, provided us with the ability to quickly assess the feasibility for this property as a hotel and evaluate the complex finance structure that includes the use of historic tax credits,” said Bleecker Seaman, co-CEO, Broadshore.
Broadshore provides financing solutions on assets that are being repositioned, such as the Rand Tower, or for new construction across a range of property types. Over the last twelve months, the company has committed over $225 million for stretch-senior and mezzanine loans. Broadshore’s niche is as a middle market lender providing loans ranging from $10 to $50 million+ for projects throughout the U.S.
“We believe one of the hallmarks of Broadshore’s lending platform is our ability to view the project from the borrower’s perspective and create an appropriate financial solution,” noted Russell Munn, Managing Director for Broadshore’s Hotel Debt and Equity program.
Rand Tower typifies the project profile that aligns with Broadshore’s lending program. The former office tower holds a prominent location in a stable downtown market. Its redevelopment as a hotel involves a complex capital structure, while its viability as a hotel is supported by the market’s diverse demand generators that includes local and out-of-town visitors, area businesses and meetings and events.
Maven Real Estate Partners plans to invest $86 million in the hotel conversion of Rand Tower which is anticipated to be completed by year-end 2020. Rand Tower, built in 1929, is listed on the National Register of Historic Places. Among its original features are terrazzo floors in the lobby and ornamental carvings over its entrances. The transformation of the tower into a premier hotel will include the addition of a restaurant and bar on the fifth floor and the creation of a large outdoor patio with retractable glass roof atop the adjacent annex with connects to the fifth floor of the tower. As a Tribute by Marriott it will be a one-of-a-kind boutique hotel that builds on the special character of the building and offers guests an array of top-tier amenities and services.
Broadshore’s loan origination was led by Chris Miller with support from Chris Bollinger, Hailey Rheinschild and Matt Rodman. Bank of the Ozarks provided the senior construction financing on the transaction. Matt Nowaczyk of JLL sourced the financing on behalf of the sponsor.
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 over $1.7 billion in assets under management as of March 31, 2019. 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 and retains regional offices in Denver, Seattle and Phoenix.
Contacts
Media contact:
Karen Diehl
Diehl Communications
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310-741-9097
