Corten Real Estate Recapitalizes 10-Property Midwest Hotel Portfolio
WILMINGTON, Del. and PHILADELPHIA, April 19, 2022 – Corten Real Estate recently provided $33 million of preferred equity to a partnership between affiliates of Arch Street Capital, Waramaug Hospitality, and Aimbridge Hospitality (the “Sponsors”) to recapitalize a 10-property, 1,103-key, Marriott-branded, select-service and extended-stay portfolio located across strong suburban submarkets in Minneapolis, Detroit and Milwaukee. The capital infusion allowed for a modification and term extension of the existing senior loan, provided funding to renovate all ten properties and capitalized necessary reserves to insulate the portfolio as it re-emerged from the effects of the COVID-19 pandemic.
“Corten was excited to partner with the Sponsors and delivered a creative capital solution that met the needs and objectives of the underlying business plan,” said Corten Real Estate Principal Brandon Flury. “We look forward to improving the assets, both physically and operationally, and repositioning the portfolio for sustained success in the near future as the broader hospitality market continues its robust recovery, particularly in the select-service and extended-stay segments.”
The portfolio comprises seven TownePlace Suites and three Springhill Suites properties that maintain a strong market share in metropolitan areas with resilient fundamentals, expanding tech presences and proximity to numerous Fortune 500 companies.
About Corten Real Estate:
Corten Real Estate Management LLC is a private investment manager that targets middle-market common and preferred equity (direct and joint venture), subordinated debt and whole loan investments in hospitality, multifamily, and office properties located throughout the United States. Corten’s sector expertise and ability to invest up and down the capital stack allows it to provide tailored funding solutions to operating partners/sponsors. The Firm’s partners have over 100 years of experience with a demonstrated track record in acquisitions, development, construction, design and property, and asset and fund management. Corten is headquartered in Wilmington, DE, with satellite offices in the Philadelphia, PA, and Washington, D.C., metropolitan areas.
About Arch Street Capital Advisors:
Arch Street is a full-service real estate investment advisory firm. Arch Street specializes in assisting institutional investors with their real estate investment strategies, including acquisition and joint venture advisory, financing advisory, and asset management and disposition services. Since 2003, Arch Street has advised its capital partners on more than $9.4 billion of acquisitions, dispositions and financings. Arch Street manages a diverse portfolio of investments across multiple sectors, including industrial, office, multifamily, single-family, hospitality, retail, health care, student housing and land.
About Waramaug Hospitality:
Waramaug Hospitality is a privately-held hotel investment manager. Waramaug Hospitality’s portfolio comprises 38 hotels totaling 4,997 rooms. Waramaug focuses on acquiring premium-branded hospitality assets throughout the United States.
About Aimbridge Hospitality:
Aimbridge is a leading, global hospitality company offering best-in-class hotel management services across a broad spectrum of franchised branded full service, select service, luxury hotels, destination resorts, convention centers and lifestyle hotels. Aimbridge’s premium portfolio represents over 1,500 properties in 50 states and 23 countries, inclusive of the pipeline. With the most robust brand diversity in the industry, Aimbridge operates 84 lodging brands and more than 90 independent boutique/lifestyle hotels in the portfolio. Aimbridge Hospitality’s global headquarters is based in Plano, Texas, with additional corporate offices in Atlanta, Calgary, Fargo, Puerto Rico and Washington, D.C.
Stefanie Langer, Principal, Corten Real Estate Management LLC