Driftwood Lands $47M to Refinance Canopy Hotel in West Palm
By Julia Echikson September 29, 2023 2:46 pm
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Driftwood Capital nabbed $47 million from Bank of America (BAC) to refinance the Canopy by Hilton in Downtown West Palm Beach.
The 12-story hotel holds 150 rooms, a rooftop pool deck and 3,000 square feet of meeting space at 380 Trinity Place, a block north of Lakeview Avenue.
Driftwood completed the 126,540-square-foot building in 2020. To finance the construction, which got underway in 2017, the Miami-based developer secured a $27.7 million loan from First American Bank and raised $19 million through the EB-5 visa investment program, all in addition to company equity, according to South Florida Business Journal.
The newly secured financing is a three-year, full-term, interest-only loan with two one-year extension options, according to Berkadia, whose Michael Weinberg and Scott Wadler orchestrated the debt.
Besides the West Palm Beach hotel, Driftwood is developing a $388 million Westin hotel in Cocoa Beach and the $200 million Riverside Wharf and Dream Hotel complex in Downtown Miami.
The Canopy property is the latest South Florida hotel to secure refinancing. Over the summer, two Brookfield-owned estates landed a combined $350 million. On the investment sales side, the Canadian investor sold the 1,000-room Diplomat Beach Resort in Hollywood, Fla., for $835 million, which remains the largest hotel sale in the country since the pandemic.
Julia Echikson can be reached at jechikson@commercialobserver.com.
