A hotel in the pipeline for Edgewater moves forward with a $27.5 million construction loan.
BGI Capital, a Miami-based commercial real estate lending firm, closed a deal this week with Edgewater Hotel Management to complete a Holiday Inn by IHG. The eight-story hotel at 414 NE 36th St. will include 207 rooms and about 3,000 square feet of ground floor retail space. It is slated for 2020.
“When you look at what is happening in Wynwood and the Design District, it’s just a positive story,” said Robert Barthelmess, managing partner at BGI Capital. “We met with the borrowers on a couple of occasions because they were having a challenge of getting financing. We like the story behind them and we like the story behind what’s happening in those areas. “
The Holiday Inn name encouraged BGI Capital to invest in the project. Barthelmess said, “Holiday Inn has great recognition in Latin America. In Latin America, Holiday Inn is seen as a great brand. It’s coming in at a great price point for the area. We think it’s going to benefit not only from the cruise business that we continue to get more of but also from overnight stays and tourism.”
The average daily rate range of about $180 will add a competitive price point advantage, said Barthelmess. He wrote by email, “The developer is very experienced in the industry and has active tourism-related businesses that will drive occupancy to the hotel.”
BGI Capital wants to invest in other projects within a two-mile radius of Edgewater’s coming Holiday Inn. The proximity to South Beach, the Design District and Midtown as well as other multifamily and hotel products coming online in the neighborhood make Edgewater an appealing neighborhood to invest in, said Barthelmess.
Barthelmess said, “We are looking at a couple of development projects. They are going through the permitting process but we are bullish on the Edgewater area.”