Thomas D. Wood and Company Secures $73M For Miami Beach Hotel Developers

Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured $73,100,000 in construction financing for three Miami Beach hotel developments.
The Robert Finvarb Companies, an established hotel developer, requested nearly $29 million in construction financing for the Hyatt South Beach, the first Hyatt hotel on South Beach.  Company President Thomas D. Wood, Jr., arranged the construction/mini-perm loan through the Company’s relationship with a national bank.  The 105-room hotel will replace the Tropical Gardens apartment building at 1600 Collins Avenue, part of South Beach’s Art Deco district.  The Miami Beach Historic Preservation Board approved the demolition of the rear section of the Tropical Gardens building, while the front of the building is expected to remain intact. The hotel is scheduled to open in early 2015.
Wood secured an additional $32,100,000 construction loan for the Robert Finvarb Companies to develop the AC Hotel South Beach.  Though AC Hotel is a Marriott Flag, it is new to the US market, and it was important to find a lender who understood the success of the brand.  AC Hotels was founded in Spain in 1998, and is among the 50 best valued brands in the Spanish market.  Wood selected a regional bank based on pricing and their knowledge of the hotel brand in Spain.  Wood secured interest-only LIBOR-based financing, and the loan was quoted and closed within 60 days.  The seven-story, 150-room hotel is scheduled to open in 2015, and will contain a restaurant and 3,200 square-feet of retail space.  AC Hotel South Beach is located at 2912 Collins Avenue, Miami Beach.
Patrick Harrington, Vice President, secured a $12,000,000 bridge loan for the complete renovation of the Claremont Hotel on South Beach through Thomas D. Wood and Company’s relationship with a local bank.  The bridge loan has a term of seven years, two years of which are interest-only, based on an interest rate of Prime + 1.25% and a 20-year amortization thereafter.  The loan-to-value is 63% of as-complete valuation, and loan-to-cost is 68%.  Built in 1947, the 69-room hotel is subject to a ground lease with 31 years remaining, but is currently undergoing a full renovation, upon which it will be converted to a Hampton Inn.  The Claremont Hotel is located at 1700 Collins Avenue, Miami Beach.