National real estate investor and developer Lightstone announced the expansion of the company’s long-standing relationship with Western Alliance Bank.
The deal included a new $140 million credit facility for Lightstone Value Plus REIT II, and a $35 million five-year loan financing the acquisition of the 183-key Hilton Garden Inn in Long Island City. The new credit facility broadly supports the expansion of Lightstone’s hospitality portfolio.
“Western Alliance Bank continues to be a true partner as we grow our hospitality portfolio,” said Lightstone President Mitchell Hochberg.
“Western Alliance has an in-depth understanding of the industry, and their financing has consistently allowed us to make strategic and nimble decisions and create greater value in our investments. We’ve long enjoyed working with our counterparts at Western Alliance Bank and look forward to continuing a successful partnership.”
The announcement builds on a five-year relationship between Lightstone and Western Alliance Bank, which has financed several Lighstone hospitality investments, including most recently an $18 million loan for a select service hotel in New Orleans, La. and a $25 million loan for a select service hotel in Needham, Mass.
Other major financing projects include two separate $60 million and $75 million revolving loans used to finance five and nine hotels across the United States, respectively.
Lightstone has established a hospitality portfolio across the country, including 29 hospitality properties totaling 3,929 keys. Most recently, the company opened the 612-key Moxy Times Square hotel in fall 2017 which quickly established itself as the premier hotel for modern travelers to New York City.
Lightstone’s portfolio includes partnerships with Marriott, Starwood, Hilton, IHG and Hyatt. The company’s national hotel development portfolio includes the 349-key Moxy Chelsea hotel set to open in Fall 2018, two additional planned NYC-based Moxy hotels, and planned Moxy properties in South Beach, Miami, as well as downtown Los Angeles and West Hollywood.
The newly acquired Long Island City Hilton Garden Inn was purchased for $60 million. The 183-key hotel was constructed in 2015 and is located at 29-21 41st Ave, across from large office developments and within walking distance from the recently reinvigorated Queens Plaza and surrounding transit hubs.
For the immediate future, Lightstone plans to continue operation of the hotel as a Hilton Garden Inn.