George Smith Partners’ Davies Group secures $42.5 million in financing to convert hotel to multi-family in Colorado Springs
LOS ANGELES, CA – Malcolm Davies and Zack Streit of the Davies Group of George Smith Partners, a leading Los Angeles-based commercial real estate capital advisory firm, arranged a $42.5 million construction financing for the conversion of a 496-key hotel into a bargain-rate multi-family resort in southeast Colorado Springs. The financing was arranged on behalf of Shir Capital and ValCap Group and provided by Parkview Financial.
“We were particularly drawn to the Colorado Springs location, the property’s extensive amenities and the irreplaceable quality of its construction,” said Richard Fishman, President of Valcap Group. “Colorado Springs is a wonderful destination for vacationers, and the high quality of its outdoor lifestyle makes the property an ideal project. Long-time residents and newcomers to Colorado Springs will find our renovated Alta Hotel + Living a great place to live and stay.
Occupying 17 acres of land, the project features boutique-style amenities including 47,000 square feet of ballroom, meeting and storage space (294 public storage units averaging 109 square feet each), a restaurant and bar, a state-of-the-art fitness center, indoor and outdoor pools, sports court and convenience store.
Built in 1980, the project will undergo a major renovation, with interior and exterior upgrades driving occupancy levels. As a relatively new asset class, the project is one of the largest hotel-to-multifamily conversions in the United States and one of the first and few in the Colorado Springs submarket. The adaptive reuse of the former hotel will rebrand the amenity-rich apartment complex as a vibrant new rental option, revitalizing the community.
“Parkview believes in creating affordable, accessible housing in strong markets across the United States. This will be our third hotel converted into a multi-family,” said Paul Rahimian, President and CEO of Parkview Financial. “We believe in the Colorado Springs market and the sponsor’s business plan to provide furnished, affordable housing to potential tenants.”
Led by Managing Director Malcolm Davies and Senior Vice President Zack Streit at George Smith Partners, the Davies Group was able to identify a lender who recognized the hotel as a prime candidate for conversion in a very strong sub-market. growth. “We are incredibly proud to play a part in the success of this unique project and are thrilled that the project provides a modern, elevated living experience for the community,” said Streit.
Consistently ranked as one of the best places to live in the United States, Colorado Springs is home to a growing number of young professionals and military personnel. The submarket’s strong tax infrastructure is bolstered by nearly thirty Fortune 500 companies and a diverse employment base, with jobs in the aerospace, military/defense, software/technology industries. computing, life sciences and tourism. The project builds on Colorado Springs’ long-term economic growth and its stable source of demand for affordable, high-quality rental products in an area of limited supply.
Davies and Streit, along with other members of the Davies group, senior vice presidents Drew Sandler and Alexander Rossinsky; Vice President Aiden Moran; Assistant Vice President Brandon Asherian; and analyst Ben Tracy secured the funding on behalf of the sponsor.
About SHIR Capital: SHIR Capital is a vertically integrated real estate investment group focused on value-added multi-family real estate. SHIR Capital and its affiliates work with real estate investors to assess, acquire, reposition, manage and create an exit strategy for each property based on its highest value and best use. SHIR Capital has a proven track record of positioning acquisitions to ensure stable cash flow while maximizing disposal potential. Currently, SHIR Capital oversees the performance of over 2,800 rental units, with an asset value of over $315 million, including offices and retail, with the majority concentrated in multi-family properties.
About ValCap Group: The ValCap Group is a private equity real estate investment firm with a portfolio worth $800 million, consisting of approximately 8,000 apartments owned and 13,000 units sold. ValCap offers high rates of return to its investors through an intensive model of acquisition, repositioning and management. The company’s decades of experience in the real estate industry in tandem with a team of experts is enhanced by the integration of technology and disciplined principles applied by other industries.
About Parkview Financial: Parkview Financial is a direct private lender specializing in commercial and residential real estate financing. Through a private real estate loan fund, the company provides bridge loans and short-term construction loans secured by first deeds of trust to developers across the United States. Since its inception in 2015, Parkview has successfully executed nearly $3 billion in financing for multi-family, commercial, office, industrial and mixed-use projects with executed loans ranging from $5 million to $200 million.
About George Smith Partners: George Smith Partners is a leading national provider of capital markets advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multi-family properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged equity loans and joint venture equity. The company has arranged more than $58 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com