RALEIGH, NC— Real estate investment trust Winston Hotels, Inc. has formed a 50/50 joint venture with Hall Financial Group to provide financing to convert an historic office building in Baltimores Inner Harbor into a 116-room Hampton Inn & Suites. The joint venture will provide a $3.5 million mezzanine loan to project owner, 131 East Redwood, LLC. The all-in cost of the project is estimated to be approximately $19 million and take about 14 months to complete. “This transaction allows us to utilize one of our primary growth strategies, mezzanine financing,” said Joe Green, CFO. “We continue to seek acquisition and mezzanine financing opportunities through joint venture partnerships, such as this one with Hall Financial. “This site is in the heart of Baltimores vibrant Inner Harbor, which attracts guests from a variety of demand generators. The Hampton Inn & Suites will be one of the only mid-market, limited service brands in the district, and we believe will secure an immediate leadership position,” said Bob Winston, CEO. “Winston was very creative in helping us put this complex transaction together,” said Shaffin Jetha, principal of the developer, Focus Development, which is in the business of utilizing tax credits to restore historic buildings. “Their persistence, support and new ideas helped us overcome the obstacles in todays difficult financing environment.” “By partnering with an experienced hotel group in this loan, we have even greater confidence about the ultimate success of this project,” said Don Braun, president of Hall Financial Group. “We will continue to look at additional opportunities to work with Winston in the future.” The company currently owns or is invested in 53 hotels with 7,273 rooms in 16 states.
