Walker & Dunlop has arranged a $112.5 million loan to refinance the Ace Hotel Brooklyn, a 13-story, 287-room full-service hotel located in Brooklyn, N.Y.
The transaction was arranged by Walker & Dunlop Capital Markets Institutional Advisory on behalf of an affiliate of GFI Capital Resources Group and Spruce Capital Partners. Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Dustin Stolly, Michael Brown, Sean Bastian and Cole Grims structured the leasehold bridge loan, which was provided by Torchlight Investors.
Proceeds were used to retire existing senior debt and preferred equity, including financing from Corten Real Estate, and to cover closing and financing costs.
“New York City remains the most supply-constrained hotel market in the country, driven by significant regulatory barriers including the Safe Hotels Act, zoning amendments requiring special use permits and Local Law 18, which restricts short-term rentals,” said Brown, managing director at Walker & Dunlop, said in a statement. “These factors have limited new hotel development, reduced existing supply, while tourism demand continues to surge, with more than 64 million visitors expected in 2025.”
Ace Hotel Brooklyn totals approximately 154,947 square feet and is located at the intersection of Fort Greene, Boerum Hill and Downtown Brooklyn. The hotel features food & beverage and event operations, including Lele’s Roman and Koju, a Japanese omakase concept. Three ground-floor retail spaces are fully leased to Black Seed Bagels, Take Me With You and Finer Sounds. Additional amenities include event and ballroom space and a fitness center.