Rialto Capital Refis Brooklyn’s Ace Hotel With $59M Loan
By Andrew Coen April 19, 2022 1:19 pm
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GFI Capital Resources Group has nabbed a $59 million debt package to refinance its Ace Hotel property in Brooklyn, Commercial Observer has learned.
Rialto Capital Management supplied the floating-rate loan on the 287-key hotel in Brooklyn’s Boerum Hill neighborhood that opened last summer. The deal closed last Friday.
Walker & Dunlop arranged the transaction with a team led of Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland and Ari Hirt.
Located at 252 Schermerhorn Street on the edge of Downtown Brooklyn, the Ace Hotel features amenities that include indoor garden, art gallery, bar and restaurant. The 13-story property is the largest of the hotel chain’s 12 outposts.
Manhattan-based GFI sold ground underneath the hotel to Safehold in early 2021 for $45 million, The Real Deal reported,citing property records. The development firm, led by Allen Gross, secured $50 million of construction financing from iStar Financial in 2016 three years after purchasing the site for $13.5 million, per TRD.
Representatives for GFI, Rialto and Walker & Dunlop did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
