Malcolm Davies and Zack Streit of The Davies Group at Los Angeles-based George Smith Partners, a premier commercial real estate capital advisory firm, arranged $42.5 million in construction financing for the conversion of a 496-key hotel to a market-rate multifamily complex in Southeast Colorado Springs. The financing was arranged on behalf of Shir Capital and the ValCap Group and provided by Parkview Financial.
“We were particularly attracted to the Colorado Springs location and the property’s very extensive amenities and irreplaceable quality of its construction,” said Richard Fishman, President of the Valcap Group. “Colorado Springs is a wonderful destination for vacationers, and the high quality of its outdoor lifestyle make the property an ideal project. Both existing long-term inhabitants and newcomers to Colorado Springs will find our refashioned Alta Hotel + Living to be a great place to live and stay.”
Occupying 17 acres of land, the project features boutique-style amenities to include 47,000 square feet of ballroom, meeting, and self-storage space (294 public self-storage units averaging 109 square feet each), a restaurant and bar, a state-of-the-art fitness center, indoor and outdoor pools, a sport court, and a convenience store.
Constructed in 1980, the project will undergo a major renovation, with interior and exterior upgrades driving occupancy rates. As a relatively new asset class, the project is one of the largest hotel-to-multifamily conversions in the U.S. and one of the first and few in the Colorado Springs submarket. The adaptive reuse of the former hotel will re-brand the amenity rich apartment complex as a vibrant, new rental option, revitalizing the community.
“Parkview believes in creating affordable and attainable housing in strong markets across the United States. This will be our third hotel to multi-family conversion,” 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 Principal and 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 the conversion in an ultra-high-growth submarket. “We are incredibly proud to play a part in the success of this unique project and are excited that the project will offer a modern, elevated living experience to the community,” said Streit.
Consistently ranked as one of the best places to live in the United States, Colorado Springs is home to an increasingly large number of young professionals and military personnel. The submarket’s strong fiscal infrastructure is bolstered by nearly thirty Fortune 500 companies and a diverse employment base, with jobs in the aerospace, military / defense, software / IT, life sciences, and tourism industries. The project builds on Colorado Springs’ long term economic growth and its stable source of demand for affordable, high-quality rental product in an area where supply is limited.
Davies and Streit, along with other Davies Group members, Senior Vice Presidents Drew Sandler and Alexander Rossinsky; Vice President Aiden Moran; Assistant Vice President Brandon Asherian; and Analyst Ben Tracy sourced the financing on behalf of the sponsor.
About SHIR Capital
SHIR Capital is a vertically integrated real estate investment group with a niche focus on value-add multifamily real estate. SHIR Capital and its subsidiaries collaborate with real estate investors to evaluate, acquire, reposition, manage, and create an exit strategy for each property based on its highest value and best use. SHIR Capital has a track record of positioning acquisitions to secure steady cash flow while maximizing upside potential for disposition. Currently, SHIR Capital oversees the performance on more than 2,800 rentable units, over $315MM in asset value, including some office and retail, with the majority of its focus in multifamily properties.
About The ValCap Group
The ValCap Group is a private-equity real estate investment firm that holds a portfolio value of $800 million, consisting of approximately 8,000 apartment units owned and 13,000 units sold. ValCap provides strong rates of return to their investors through an intensive hands-on acquisition, repositioning, and management model. The firm’s decades of experience in the real estate industry in tandem with an expert team is enhanced with the integration of technology and disciplined principles applied from other industries.
About Parkview Financial
Parkview Financial is a direct private lender specializing in ground up commercial and residential real estate financing. Through a private real estate debt fund, the firm provides short-term bridge and construction loans secured by first trust deeds to developers throughout the United States. Since inception in 2015, Parkview has successfully executed close to $3 billion in financing for multifamily, retail, 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 market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating 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.
Photo caption: The Davies Group at George Smith Partners secures $42.5M in construction financing on behalf of Shir Capital and the ValCap Group for hotel-to-multifamily conversion in Colorado Springs. (Photo credit – Google Earth)