21c Museum Hotels and Junius Real Estate Partners, a specialized real estate investment unit of J.P. Morgan Private Bank, announced Junius Hospitality Partners, a fund managed by Junius, made an investment in 21c Museum Hotels. Under the agreement, JHP will deploy dedicated capital toward building or acquiring properties for 21c’s expansion. As part of the transaction, JHP will own a minority stake in the operating company.
Dedicated Junius capital will give 21c the ability to develop up to $250 million in projects. Financing has closed on their first joint venture, the development of 21c Museum Hotel Nashville. The property will be a rehabilitation of downtown’s Gray & Dudley Building, and is slated to open during the first half of 2017. The property will include 124 guestrooms, over 10,500 square feet of museum and event space and five rooftop-level rooms, including two suites with private terraces. 21c will manage the property and have joint ownership.
“21c is positioned for meaningful growth,” said Steve Wilson, co-founder and CEO of 21c Museum Hotels. “We have devoted significant time and care in finding the right strategic partner for this next phase. The Junius team has an appreciation for our brand, our mission and our company culture. Their forward-thinking investment strategy and experience in both the hotel industry and in real estate development make them an ideal partner.”
“Junius is extremely excited to be partnering with 21c,” said Richard Gomel, partner and senior investment officer at Junius. “We have been thoroughly impressed by the quality and passion of their team to deliver meaningful, innovative and authentic guest experiences while having a positive impact in the local communities they serve. Their strong brand, combined with their solid operating platform, have yielded attractive investment returns and enhanced real estate values. We look forward to participating in the growth of this special company.”
21c has doubled its footprint over the past 18 months, adding three new hotels and restaurants and 31,000 square feet of contemporary art museum and event space. The company now operates six hotels, seven restaurants and employs over 1,000 people.