Berkadia Secures $13 Million Loan for Ocean Drive Hotel
Berkadia arranged a $13 million loan for the owners of The Lord Balfour Hotel on Ocean Drive, in Miami Beach, Florida. Senior Managing Director Charles Foschini, Managing Director Christopher Apone and Analyst Robert Iudice of Berkadia's South Florida office secured the loan on behalf of Eidico, an Argentinean real estate developer specializing in hospitality.
The refinancing will be used in part to pay off the original loan and a construction loan for a new wing of the hotel on an adjacent lot, which includes 17 guest rooms, a rooftop terrace with plunge pool and Jacuzzi, a gym and business center, and a 40-seat restaurant called Salt Kitchen and Lounge.
Mercantil Bank provided the loan, with a 24-month term and one 36-month extension option.
"Though a small deal for our team, we had numerous issues to work through to get this loan closed," said Foschini. "The foreign sponsorship, the lack of operational history and the difficulties of getting a certificate of occupancy in Miami Beach contributed to the challenges of this assignment. In the end, the exceptional Ocean Drive location and low loan-to-value made for a great loan for our banking relationship."
Located at 350 Ocean Drive in the prestigious "South of Fifth" neighborhood of Miami Beach, The Lord Balfour Hotel is an 81-room, full-service boutique hotel built in the Art Deco style during the 1940s. Eidico purchased the property in 2010-its first acquisition in the United States-and remodeled the property in 2013 to compete with some of the newer/renovated properties in South Beach. The addition was completed in early 2018. The Lord Balfour is located steps from the iconic Ocean Drive, the center of the Miami Art Deco District, and Lummus Park.