CBRE Hotels Arranges $69.0 Million Construction Loan For Union Station Hotel Development in Denver

Denver, Colorado – January 17, 2017 – CBRE Hote​ls announced that it has arranged a $69.0 million construction loan for the development of a 12-story, Hilton Garden Inn in Denver, Colorado. The hotel, located at 20th street and Chestnut Place, adjacent to Denver’s Union Station, is being built around the historic Denver Hose Company No. 1 building, which will be restored and incorporated into the hotel.

Marc Sallette, David Treadwell, Mike Cantwell and Olga Lepow, with CBRE Hotels’ Debt & Structured Finance teams in Houston and Denver, secured the loan on behalf of the borrower, Focus Property Group. The 42-month, fixed and floating rate structured financing included $18.0 million in mezzanine debt as well as $8.0 million in preferred equity. Bank of the Ozarks served as the senior lender, Artemis Real Estate Partners served as the mezzanine lender and EverWest Real Estate Partners served as the preferred equity lender.

“The sponsor’s sought 80% loan-to-cost, non-recourse construction financing, which required a complex transaction with multiple layers,” said Mr. Sallette, senior vice president, CBRE Hotels. “We had to assemble a team of lenders who understood the value this property would bring to the Union Station area and was also able to work within the borrower’s parameters. Our main focus was identifying a solution that would work for all parties involved and I believe we achieved that for everyone.”

Focus Property Group specializes in infill development in Denver’s urban core. The company has developed office, retail and self-storage projects in central Denver, including both new construction and adaptive reuse of historic buildings. The Hilton Garden Inn, which will contain 233 guestrooms and will feature banquet and meeting rooms, a fitness center and other hotel amenities, is Focus Property Group’s first hotel project. Davidson Hotels will be the operator.

Located in the heart of downtown Denver, Union Station acts as the city’s central transportation hub.  The recently renovated train station features a unique mix of bars, restaurants and boutique shops.

CBRE Hotels is a specialized advisory group within CBRE providing capital markets, consulting, investment sales, research and valuation services to companies in the hotel sector. CBRE Hotels is comprised of over 385 dedicated hospitality professionals located in 60 offices across the globe.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.  Please visit our website at www.cbre.com.​

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