Knighthead Funding LLC has provided King & George Street, LLC with $30.5 million in short-term first mortgage debt for the development of ROOST Charleston, a luxury full-service boutique hotel and 11,003 s/fof prime retail in Charleston, S.C.
Knighthead’s non-recourse, floating rate loan has a term of 27 months. It is Knighthead’s first financing in South Carolina.
The new mixed-use property will be made up one newly constructed building and three redeveloped historic buildings, located in the Lower King section of historic Charleston, which is known for its high concentration of luxury retail stores and restaurants.
ROOST Charleston will offer a combination of standard hotel guest rooms and extended stay apartments. Amenities will include a restaurant, a café, spa, outdoor courtyard and ground floor retail shops.
The property’s location in the Historic District, where accommodations are in continual high demand, is an indicator of the project’s long-term viability according to Knighthead Vice President of Loan Originations, Brian Sullivan.
“The Charleston market benefits from a variety of tourist and leisure attractions in the area, creating a year-round need for lodging,” said, Sullivan. “We were impressed with sponsorship having successfully developed several similar hotels in Philadelphia.”