DALLAS—HALL Structured Finance (HSF) has closed a new first lien loan totaling $10.9 million to finance the construction of a TownePlace Suites by Marriott in Oak Creek, WI, located in southern Milwaukee.
The project developer is Bob Gustin with Albuquerque, NM-based Gustin Property Group LLC. HSF previously financed affiliates of Gustin Property Group on two other hotel developments, including River Terrace Inn in Napa, CA, a $10.95-million construction loan, and Hotel Indigo in the Galleria neighborhood in Houston, a $8.49-million acquisition and development loan.
The hotel will be located within the Drexel Town Square master-planned development, approximately 3.5 miles south of General Mitchell International Airport and next to the recently-announced Oak Creek IKEA store opening in summer 2018. Drexel Town Square is a multi-phased, mixed-use project that serves as Oak Creek’s town center. In addition to the hotel, the project includes a new city hall and public library, surrounding retail stores, restaurants, office space and apartments. The project also includes 18 acres of green space, including parks, walkways and other amenities such as a splash pool, skating rink and farmers market.
“The hotel’s attractive location in the Milwaukee area, coupled with the surrounding Drexel Town Square development, proximity to the airport and overall strong demand generators, made this project an ideal investment for us,” said Mike Jaynes, president of HALL Structured Finance. “Visitors to the area and surrounding businesses will enjoy the added amenity of a nearby, modern hotel located in a vibrant, walkable area.”
The new TownePlace Suites by Marriott will be the only hotel in the entire submarket that is located within a pedestrian-friendly development, being steps from multiple dining, retail and entertainment destinations, according to the company.
“HSF provided us with a specialized capital solution to meet our needs, and their extensive real estate expertise and entrepreneurial approach has allowed us to successfully finalize loan closure and begin construction,” said Bob Gustin, owner of Gustin Property Group. “The new hotel will be a great addition to Oak Creek, and we’re eager to begin construction.”
The TownePlace Suites flag is Marriott’s mid-priced extended stay product, which is expected to compete well within the current mix of competitive hotels in the area, according to the company.