IPA Capital Markets (IPA), a division of Marcus & Millichap (NYSE: MMI), specializing in capital markets services for major private and institutional clients, has arranged financing for the acquisition of The Blockade Runner Beach Resort on behalf of Castle Peak Holdings, a hospitality investment and development company focused on iconic outdoor destinations across the country.
The financing package was provided by Benefit Street Partners (NYSE: FBRT) and Driftwood Capital. The property will undergo a phased renovation with plans to enhance the experience for both overnight guests and Wrightsville Beach locals.
The 151-key beach resort was built in 1964 and was partially renovated in 2019. The property is one of only a few resorts on the East Coast with frontage on both the Atlantic Ocean and Intracoastal Waterway, with unobstructed water views from every guestroom. Jordan Ray, Jamie Matheny, and Rachael Krawiecki with IPA arranged the loan on behalf of the borrower.
“There is intense competition for well-structured hotel financing,” said Mr. Ray. “Castle Peak, Wrightsville Beach, and the Blockade Runner check many boxes for the type of hospitality experience lenders believe will continue to drive demand. We were able to structure a capital stack led by Benefit Street Partners, a best-in-class mortgage REIT and Driftwood, a very experienced owner and manager of hotels in their own right. Combined, the lenders understood the value proposition and the strength of this asset in a market with significant demand and minimal competition.”
“We are excited for the sponsor to expand their hospitality portfolio and acquire the Blockade Runner Beach Resort,” added Mr. Matheny. “The hospitality market in Wrightsville Beach is supply constrained, with visitors seeking a design-forward, experience-driven product. The acquisition loan allows the sponsor to acquire the asset while finalizing designs to upgrade and position the property to welcome the next generation of guests in Wrightsville Beach.”
Terms for the loan were not disclosed.
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets