Mission Capital Debt & Equity (MCDE), part of Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, has arranged $64 million in financing for the development of The Godfrey Hotel Detroit. An MCDE team led by Jordan Ray, Steve Buchwald, and Jamie Matheny, exclusively represented the sponsor, a joint venture between Oxford Capital Group and Hunter Pasteur Homes.
“Great projects get financed. The Godfrey will be the best place to stay, eat and drink in Corktown, and it’s 100 yards from the Ford Innovation campus which is the new and needed job hub for metro Detroit,” said Ray. “There is a wave of investment and jobs coming to Detroit, but very few other hotel projects slated to break ground. This, combined with the Sponsor’s proven track record, made this a compelling financing.”
This shovel-ready project is in an Opportunity Zone in the rapidly appreciating Corktown neighborhood of Detroit. Sitting prominently on Michigan Avenue between 8th and 9th Streets, the 4.5-star luxury lifestyle hotel will span 145,000 square feet and include 227 keys. Amenities will include a 9,600-square-foot indoor-outdoor bar and lounge, a 7,100-square foot chef-driven restaurant, a 9,000-square foot ballroom and meeting space, another 6,200-square foot ballroom, and a fitness center.
The project is part of a master development that will include two adjacent apartment complexes. The residential component is not part of this financing.
“There is an encouraging trend of growing lender demand right now,” said Matheny. “The financing interest in Detroit-based projects is also inspiring for the market, particularly as the city fared comparatively well during the pandemic. This loan will allow the sponsors to develop a project that will benefit from a dearth of new, higher-end hotel options in the market.”
About Marcus & Millichap Capital Corporation
Mission Capital Debt & Equity Finance (MCDE) has arranged over $9 billion of financing in the last ten years. MCDE is now a part of Marcus & Millichap Capital Corporation (MMCC).
https://www.missioncap.com/debt-equity/
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales, and consultative and due diligence services. In 2020, MMCC closed 1,943 transactions totaling $7.67 billion.
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