Driftwood Capital, a vertically integrated commercial real estate firm, has organized the $60 million refinancing of the Hilton Cocoa Beach Oceanfront Hotel, a 295-key resort in central Florida’s Space Coast.
Managing Directors Michael Weinberg and Scott Wadler worked with Associate Director Alec Fox of Berkadia Hotels & Hospitality to secure $60 million in financing through a national bank.
“We are thrilled to announce the successful closure of a new loan for the Hilton Cocoa Beach Oceanfront,” Driftwood Capital CEO Carlos Rodriguez, Sr., said in a statement “The Space Coast is experiencing remarkable growth, solidifying its position as a premier multi-segment destination in Florida, catering to leisure, corporate, and meeting travelers. Just a 45-minute drive from Orlando, the market benefits from diverse demand generators such as the Kennedy Space Center, Port Canaveral, Patrick Space Force Base, and renowned beaches. With the imminent completion of the extensive guestroom and bathroom renovations, the Hilton is poised to become the leading full-service hotel in the region.”
Berkadia arranged a three-year, floating-rate loan with two extension options, full-term interest only payments, and no required depository relationship.
“Upon full funding, the $60 million loan offers substantial value to our investors, providing flexibility in transitioning from a CMBS loan to a balance sheet mortgage,” added Tanya Zapata Sutcliffe, VP of acquisitions at Driftwood Capital. “We anticipate that the best-in-class renovation will empower the Hilton to capture additional market share and capitalize on the growing demand in Cocoa Beach. With our decade-long experience managing the hotel, we’ve positioned ourselves as market leaders ready to leverage our upgraded product.”
The resort is positioned 15 minutes away from Patrick Space Force Base and 10 minutes away from Port Canaveral, now the country’s busiest cruise port.
“New supply in Cocoa Beach is virtually nonexistent, with extremely strict height and density restrictions preventing any new competition from entering the market,” said Weinberg. “Once the renovation is complete, the Hilton Cocoa Beach will be positioned to be the leading asset in the market, allowing the sponsor to push performance past historical peaks.”
Driftwood Capital's investment strategies include hospitality acquisition, development and lending. It is developing the $402 million Westin Cocoa Beach and the $200 million Riverside Wharf/Dream Hotel in downtown Miami, both in Florida.