Cleveland – August 2, 2018 – BGL Real Estate Advisors (BGLREA) is pleased to announce the closing of construction financing towards the development of the Cambria Hotel Minneapolis – Saint Paul Airport in Bloomington, MN. The hotel project, which is slated to open in August 2019, is a collaboration between Ceres Enterprises, The Orlean Company, BGLREA & Choice Hotels and includes senior construction financing originated by an affiliate of Oz Real Estate.
The hotel will have 170 rooms and is located in a thriving mixed-use retail and entertainment corridor adjacent to Mall of America. The Mall of America currently hosts over 40 million visitors annually and will encompass over 10 million square feet following the completion of its Phase II expansion. Additionally, the Minneapolis – Saint Paul International Airport (MSP) serves almost 40 million passengers annually and is the 16th busiest airport in terms of passenger traffic in the U.S.
The non-recourse, senior construction loan from an affiliate of Oz Real Estate was compelling to the project sponsorship due to the loan structure which contemplates a purchase of the leased fee interest in the property by Oz Real Estate in connection with the project stabilization. It is anticipated that Oz Real Estate may purchase the leased fee interest which would provide a portion of capital required to repay the senior and subordinated construction financing.
“We couldn’t be happier to add another strategically located Cambria serving the growing area of Minneapolis and nearby to a major airport, providing a convenient location for guests visiting the Cambria Hotel Minneapolis – Saint Paul Airport,” said David Pepper, Chief Development Officer of Choice Hotels.” The Crisafi and Orlean families have been important teammates to Choice Hotels over the years and will now add a fourth destination to their Cambria portfolio.”
The Brown Gibbons Lang & Company (BGL) team was instrumental in capital sourcing and advising the sponsors on the highly complex structure financed by an affiliate of Oz Real Estate, laying the foundation and creating a template to replicate for new development sites.
David Crisafi, President of Ceres Enterprises, LLC commented: “We have been working closely with BGL for over 3 years on multiple projects; they have proven time and again that their perseverance and tenacity are unmatched in the industry. Their ability to navigate challenges and foresee potential obstacles with multiple groups was critical to closing-out this financing. This is the fourth Cambria Hotel we’re developing, but this was by far the most challenging and labor intensive structure to-date, so we were fortunate to have a trusted partner in BGL on our side.”