HFF arranges sale and financing for Westin Tampa Harbour Island
TAMPA, FL – September 12, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of and arranged acquisition financing for the Westin Tampa Harbour Island, a 299-room, full-service hotel located along downtown Tampa’s waterfront on Harbour Island.
HFF marketed the property on behalf of the seller and completed the sale to affiliates of Walton Street Capital, which acquired the 100-percent fee-simple interest in the property. HEI Hotels & Resorts will manage the property. Additionally, on behalf of the new owner, HFF placed the floating-rate acquisition loan with a banking and financial services holding company.
Opened in 1987, the centrally-located hotel features 299 guest rooms, which includes 19 suites. The property’s amenity package contains 17,432 square feet of meeting space, a heated outdoor pool, WestinWORKOUT Fitness Studio and sweeping water views. Located at 725 South Harbour Island Boulevard, the hotel is proximate to an abundance of transient and corporate demand generators, which provide a base for healthy year-round operating fundamentals, including downtown Tampa, Amalie Arena, Florida Aquarium, historic Ybor City, the Channel District and numerous museums and sporting venues. Most notable, the hotel is adjacent to the Tampa Convention Center and the planned $2 billion, six million-square-foot, mixed-use office, retail and multi-housing development being executed by Strategic Property Partners.
The HFF investment sales team representing the seller was led by senior managing director and head of HFF’s hotel group Daniel C. Peek and associate directors Preston Reid and Alexandra Lalos.
The HFF debt placement team representing the borrower was led by managing director Michael Weinberg.
“The Westin provides further evidence to the robust investor demand for hospitality assets in the Tampa Bay market,” Peek said. “Like several markets in the southeastern U.S., Tampa’s economic expansion continues to be strong, perhaps best reflected in the performance of the region’s hotel sector over the past 24 months”.
“The Tampa hospitality market continues to attract high-quality institutional interest from groups like Walton Street Capital,” Reid added. “With relatively muted new supply, a robust convention calendar and marquis events, such as the 2017 College Football Playoff National Championship, on the horizon, the market shows little signs of slowing.”
“This is the third hotel financing we have arranged this year on trophy assets in downtown Tampa and downtown Orlando totaling nearly $175 million,” Weinberg stated. “The interest was strong from debt capital providers for all three despite the tightening of hospitality financing that is occurring nationally.”
About Walton Street Capital
Walton Street is a private equity real estate investment firm. Since its founding in 1994, affiliates of Walton Street Capital have received total equity commitments of over $8.4 billion from public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts, and high net worth individuals. Affiliates of Walton Street Capital have invested and/or committed to invest over $7.5 billion of equity in more than 300 separate transactions. Learn more at www.waltonst.com.
About HEI Hotels & Resorts
HEI Hotels & Resorts, headquartered in Norwalk, Connecticut, is a leading hospitality investment firm that acquires, develops, owns and operates independent and branded hotels and resorts throughout the United States under such well-known brand families as Marriott, Starwood, Hilton, Hyatt and IHG. HEI takes a holistic approach to creating value for its investors and employees by setting the highest standards across all aspects of hotel management and operation and focusing on the central principles of excellence and continuous improvement. For more information about HEI, visit the company's website, www.heihotels.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 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.