HALL Provides $56M Construction Loan on Colorado Springs Marriott Hotel
By Mack Burke August 25, 2021 11:26 am
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A quartet joint venture of real estate investors and developers have nabbed $55.6 million in construction debt from HALL Structured Finance (HSF) to build a dual-flagged Marriott International, SpringHill Suites and extended-stay Element by Westin hotel in Downtown Colorado Springs, according to information from the lender.
The first lien construction loan was provided to a joint venture among Colorado Springs-based developers Olive Real Estate Group, local contractor Colarelli Construction, Atlanta-based Hotel Equities Group and Hotel Operations Services LLC.
Construction on the development started in early 2020, without a loan in place, and was impacted by the pandemic. HSF has now stepped in to supply debt to help finish construction and establish the asset for an eventual permanent financing, according to a representative of HSF.
“Colorado Springs has shown tremendous growth as one of the most populous and fastest-growing cities in the state, offering visitors an abundance of outdoor activities, sports and entertainment, and business opportunities,” HSF President Mike Jaynes said. “This hotel development will be the first Marriott 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 a great project for us to finance.”
Paramount Capital Advisors’ John Pascal, who negotiated the loan, said HSF “stepped up in a challenging financing environment to fund this deal, which speaks to their entrepreneurial approach and the viability of the project.”
Construction on the eight-story property will eventually result in a 136-key SpringHill Suites and 125-key Element by Westin hotel. There will be shared amenities on-site, which include an open-air courtyard with lounge seating that connects them, a fitness center, a business center, an indoor pool and whirlpool, as well as complimentary breakfast offerings. There will also be a restaurant on the ground floor, roughly 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 the surrounding area, according to information from HSF and an August 2020 press release from Olive Real Estate that detailed the development.
Hotel Equities will manage the properties, which are expected to open next spring.
Olive Real Estate Director Jim DiBiase said the local firm is looking forward to delivering the asset in the next several months, providing “unique new accommodations and dining options to our vibrant Downtown Colorado Springs community.”
The hotel is situated at 402 South Tejon Street in the center of Colorado Springs, just a short walk from the new U.S. Olympic & Paralympic Museum and Weidner Field — the new home of the city’s professional soccer team, the Colorado Springs Switchbacks Football Club — which opened a few months ago. Aside from these two sporting attractions, the area is bolstered by other museums, food and beverage offerings, shopping, and a bevy of park space. (The city, itself, is nestled in at the southeastern border of the Rocky Mountains.)
Last August, Olive Real Estate said in a press release that it expected the roughly 300,000-square-foot asset to open this year as the first Marriott hotel to have the SpringHill Suites and Element brands under one roof.
Mack Burke can be reached at mburke@commercialobserver.com.
