CBRE has arranged $72.5 million in financing for the sale of the St. Pete Beach Hotel | Business Observer
ST. PETE BEACH – The $83 million sale of the Postcard Inn in St. Pete Beach to two New York and Dubai investment firms was completed in part with $72.5 million in financing arranged by CBRE .
According to the commercial real estate company, the loan was arranged by its Hotels Debt & Structured Finance division, which worked with BlackRock to secure the financing. CBRE represented the vendor in the transaction of the popular beach hotel, which has been a Pinellas County mainstay for more than half a century.
The company says it has completed more than $4.5 billion in funding in the hospitality sector since the start of the pandemic. This latest transaction “reinforces the strength of capital markets seeking leisure-oriented resorts in supply-constrained coastal markets.”
The 9.64-acre Postcard Inn sits on approximately 300 feet of oceanfront property in St. Pete Beach. The hotel, which was built in 1957, features a full-service restaurant, a 3,880-square-foot indoor outdoor patio, and one of the largest pools on St. Pete Beach.
The new owners are a joint venture between The LCP Group, of White Plains, New York, and the private equity firm Safanad, based in New York and Dubai. LCP, according to its website, was founded in 1973 and has approximately $1 billion in assets under management. Safanad is a private equity firm specializing in real estate that claims to have completed more than 40 transactions totaling more than $10 billion since its inception in 2005.
The companies say the hotel will undergo a major refurbishment to modernize rooms and the dining offering.
The hotel will be managed by Crescent Hotels & Resorts, which will operate the postcard under the Latitudes Collection umbrella. Other hotels in the collection include the PGA National Resort and Spa in West Palm Beach and the Mayfair at Coconut Grove in Miami, as well as about 30 others in the United States and Canada.
The postcard last changed hands in 2017 when the Carlye Group sold it for $47.4 million to TPG Hotels & Resorts.
The postcard is just the latest major sale from a hotel in the area.
In December, the 180-room Current Hotel in Tampa sold for $85 million, and the 115-unit SpringHill Suites on Clearwater Beach sold in October for $51.8 million, or nearly $20 million. more than its previous owner three years ago. The adjacent property, a 140-room Residence Inn, sold for $63.1 million in October, up from $38.9 million in 2018.
Further south, the Naples Beach Hotel & Golf Club sold for $362.3 million last year.
Analysts said demand for hotel properties is driven by a combination of a strong tourism market fueled by people traveling within the country due to COVID-19 restrictions and economic factors. Inflation is one of the factors favoring the hotel industry. Hotels have the flexibility to increase rates each night to accommodate rising costs while other property categories are locked down.