Flynn Gets $41M ACORE Loan in Eastern Expansion Effort
ACORE Capital has lent $41 million in a deal that will help a development company buy and update a group of five hotels in three new markets, Commercial Observer has learned.
The borrower, San Francisco-based Flynn Properties, will use the proceeds to acquire a quintet of Courtyard by Marriott properties in Texas, Virginia and Maryland. The off-market senior loan includes funds to buy the buildings and also for what an ACORE spokesman described as “moderate” renovations at the properties.
The seller was Colony Capital, according to San Antonio Business Journal.
Both of the Texas locations are on the north side of San Antonio, just outside the Interstate 410 beltway: one at 8585 Marriott Drive, and another at 8615 Broadway Street. New supply has made the city’s lodging picture more competitive, according to research published this spring by CBRE — but hotels in Texas’s second-largest city have nonetheless managed to record growth in the crucial revenue-per-room metric that significantly outpaced the national level. Together, the hotels include 291 rooms and 3,757 square feet of meeting space.
The Maryland properties, by contrast, are spread farther apart. One, in Landover, Md., is just two miles northwest of the state’s boundary with the District of Columbia; it’s accessible via the District’s metro system. The other, in Cockeysville, is only about 10 miles south of the Pennsylvania state line. Another Courtyard by Marriott in Fairfax, Va. — also within commuting distance of the nation’s capital — completes the deal’s trio of Northeast Corridor assets.
Flynn is a subsidiary of Flynn Holdings, a firm led by developer Greg Flynn, who also owns a major restaurant group that controls more than 1,200 chain restaurants, according to the company’s website. That site also indicates that the acquisitions are the firm’s first hotel ventures east of the Rocky Mountains. It owns resorts in California, Colorado and on Mexico’s Pacific Coast. Prior investments include Bay Area, Southern California and Pacific Northwest hotels.
Representatives for Flynn didn’t immediately respond to an inquiry.