HFF Arranges Sale and Financing for Hilton Tampa Downtown Hotel

May 01, 2019 04:17 pm

Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale and arranged acquisition financing for the Hilton Tampa Downtown, a 520-room, full-service hotel in the heart of downtown Tampa, Florida.

HFF marketed the property on behalf of the seller, CrossHarbor Capital Partners LLC. Walton Street Capital, L.L.C. purchased the asset. Additionally, working on behalf of the new owner, HFF placed the acquisition loan. In 2016, HFF brokered the sale and arranged acquisition financing of Hilton Tampa Downtown for the seller, who executed a multi-million-dollar property improvement plan that was completed in 2017.

Hilton Tampa Downtown was built in 1982 and fully renovated when it was converted from a Hyatt to a Hilton in 2013. The 18-story hotel features a rooftop pool and amenity deck, 24-hour fitness center, executive lounge, business center, 30,000 square feet of meeting space and three food and beverage outlets: 211 Lounge, 211 Restaurant and a full-service Starbucks. Situated on 5.6 acres at 211 North Tampa Street, the hotel is proximate to several demand generators, including the University of Tampa, Amalie Arena, Tampa General Hospital, the Florida Aquarium, the Port Tampa Cruise Terminal and 9.7 million square feet of office space in Tampa’s central business district. The hotel is also within walking distance to Water Street, the $3-billion, 50-acre mixed-use office, retail and multi-housing district now under construction that is being developed by Tampa Bay Lightning NHL team owner Jeff Vinik in partnership with Bill Gates’ Cascade Investments.

The HFF investment advisory team representing the seller was led by senior managing director and head of HFF’s hotel group, Daniel C. Peek, senior director Preston Reid and director Wyatt Krapf.

“It was a privilege to work with two great institutional investors on this transaction and to continue our legacy of involvement with one of the most significant hotels in the Tampa market,” Peek said.

“Tampa is no longer an up-and-coming city – it’s here,” Reid added. “The amount of investment from world-class, institutional investors continues to pour in for well-positioned, quality assets like the Hilton Tampa Downtown.”

The HFF debt placement team representing the borrower was led by senior managing director Michael Weinberg.

“There was strong interest in financing this asset due to the stellar sponsorship, robust cash flow and tremendous location,” Weinberg said. “This is Walton Street Capital’s second hospitality acquisition in downtown Tampa, and it was a pleasure representing them again.”

In 2016, HFF closed the sale of and arranged financing for Walton Street Capital’s acquisition of the Westin Tampa Harbour Island, a 299-room, full-service hotel located along downtown Tampa’s waterfront on Harbour Island.

About CrossHarbor Capital Partners LLC

CrossHarbor Capital Partners LLC is a Boston-based alternative investment management firm that invests in core-plus, value-add, and opportunistic commercial real estate transactions. The firm seeks short and medium duration debt and equity investments that offer a compelling case for generating high absolute returns. CrossHarbor emphasizes investment strategies rooted in property-level operational enhancements as well as those with pricing advantages that arise from distressed, complex, and dislocated scenarios. CrossHarbor was founded in 1993 by Samuel T. Byrne and William H. Kremer and has invested in more than $13 billion of commercial real estate on behalf of a diversified and highly regarded group of endowments, foundations, public and corporate pension plans, financial institutions, family offices, and sovereign entities. For more information, visit www.crossharborcapital.com.

About Walton Street Capital, L.L.C.

Walton Street Capital, L.L.C. is a private equity real estate investment firm. Since its founding in 1994, affiliates of Walton Street Capital have received total equity and loan commitments of approximately $12 billion from public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts and high net worth individuals. Affiliates of Walton Street Capital have invested and/or committed to invest over $10 billion of equity in more than 350 separate transactions. Visit https://www.waltonst.com to learn more.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

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