HFF arranges $160 million in combined financing for development of W + Element Hotel in Center City Philadelphia, Pennsylvania
DALLAS, TX – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $160 million in combined financing for the development of a trophy-class, 755-room, dual-branded W + Element hotel development in Center City Philadelphia, Pennsylvania.
HFF worked exclusively on behalf of Chestlen Development, LP to secure construction financing totaling $160 million by structuring a $100 million senior loan in conjunction with $60 million in mezzanine financing. HFF placed the senior loan with Bank of the Ozarks and the mezzanine financing with Cornerstone Real Estate Advisers LLC. Vine Street Matthews, a joint venture between Matthews Southwest and Vine Street Ventures, is the developer of this project.
The completed hotel complex will be located at 1441 Chestnut Street at the intersection of 15th and Chestnut Streets in Philadelphia’s Center City. The hotels will be one block from the newly-redeveloped Dilworth Plaza and City Hall and minutes from the recently expanded Pennsylvania Convention Center in downtown Philadelphia. The development site is located in the fourth largest retail market in the U.S. with numerous upscale retail shops and restaurants within walking distance, in addition to a variety of artistic and entertainment venues.
The 55-story hotel complex will be operated by Starwood Hotels & Resorts Worldwide and scheduled to open in late 2017. W Philadelphia will be the brand’s only hotel in Philadelphia and will consist of 295 guest rooms averaging 400 square feet for a typical room with a king-sized bed and 800 square feet for a junior suite. Guest rooms will be located on levels 32 through 49 with an average of 21 rooms per floor. The W portion of the hotel complex will feature a 150-seat, three-meal restaurant; a 100-seat destination bar; a 30-seat signature W Living Room, the brand’s take on the traditional hotel lobby; 32,300 square feet of meeting space; a 2,900-square-foot full-service spa; a 1,400-square-foot FIT gym; swimming pool with a terrace area and 15-seat bar/grill outlet; 24-hour room service; a business center; concierge service and separate lobby and elevators. First introduced in 1998, W Hotels is an innovative luxury lifestyle brand and a global design powerhouse with more than 46 hotels and retreats in the world’s most vibrant cities and exotic destinations.
Element Philadelphia will provide a smart, sustainable hotel experience on levels 9 through 31 with an average of 20 rooms per floor. It will house 460 studio, one- and two-bedroom guest rooms averaging 400 square feet for a king room and 600 square feet for a suite, each room featuring a fluid design of modular furniture, a fully-equipped kitchen with a dining area and separate sleeping and living areas. Element Philadelphia will also feature a breakfast area where guests can enjoy a healthy Rise breakfast each morning and Relax evening reception three nights a week – both complimentary. Additional amenities will include a Restore pantry stocked with fresh, convenient items to prepare in-room, a meeting room totaling 470 square feet that can be divided into two rooms, a 750-square-foot fitness center and a separate 7,500-square-foot lobby and elevators located on the second floor. On track to triple its portfolio by 2017, Element is recognized as an industry leader in the eco-space and offers travelers a fresh, reimagined interpretation of the extended stay hotel experience.
The HFF team was led by managing directors John Ahmed and Anthony Cutone and director Jordan Lex.
About Chestlen Development, LP
Chestlen Development, LP (Chestlen) owns and controls the land and improvements located at 1441 Chestnut Street, Philadelphia, Pa. Chestlen’s general partner is Chestlen Development, LLC and its Managing Member is Brook Lenfest. As the Managing Member, Mr. Lenfest is involved in all primary decisions including but not limited to project finance strategy and implementation, exterior and interior design, vendor selection and all other key partnership related strategic decisions. www.chestlen.com
About VSM Development
Vine Street Matthews Development. (VSM) is a national real estate and development services firm owned and controlled by Jack Matthews and Jeffrey Cohen. The Corporation is engaged in the development and/or re-development of mixed use properties involving upscale hotels and branded residences in high barrier, urban and technology based markets. VSM offers its clients a full range of development services including but not limited to design building, construction management, landmark conversions, LEED Certified construction, value engineering, financial modeling and brand elevation. www.vsmdevelopment.com
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.