Arriba Capital recently closed a $40.7 million ground-up construction loan for a 194-room, dual-branded Marriott Fairfield Inn & Suites and Towneplace Suites in midtown Atlanta.
The hotel will be seven stories high on top of a 220-space, five-story parking deck. The non-recourse loan was leveraged to 78 percent of the total project cost with a two-year term and three six-month extension options.
By offering both the TownePlace Suites and the Fairfield Inn & Suites brands in one property, Arriba Capital is looking to cater to a larger demographic and save on expenses. On-property amenities include a market pantry, meeting space, fitness room and business center. The two hotels will share a common front‐of‐the‐house area, including registration, breakfast area and fitness room. The two hotels will also share back‐of‐house elements including laundry, maintenance area and mechanical/electrical.
The property is located in Midtown Atlanta, directly across the street from Emory University Hospital and walking distance to major attractions. The hotel is also positioned to profit from major sporting events scheduled to be held in Atlanta, such as the Super Bowl in 2019, the NCAA College Football Championship in 2020 and the NCAA Final Four, also in 2020.
The borrower is a privately held hospitality management and development company that currently owns and operates 22 premium-branded hotels in the Southeast.
Arriba Capital is a commercial real estate capital markets firm with offices throughout the United States. Through its network of national, regional and local lenders, Arriba provides asset management, investment banking, capital markets services and advisory solutions for a wide variety of commercial real estate properties, including apartments, shopping centers and retail strips, office buildings, industrial facilities, single-tenant net-lease properties, seniors housing, hotels and self-storage facilities.