Cambria at Yale University, New Haven CT

Scenario

In executing its role as manager of a single asset debt fund, EastAlliance was tasked to find a suitable and qualified reinvestment opportunity for a group of international investors. After exploring specific markets and working with fund investors in defining preferred investment structures, EastAlliance was approached with an opportunity to take a low-leverage debt position in the acquisition of a newly built hotel led by a Borrower with 45 years of experience in the development and acquisition of premium branded hospitality properties throughout the United States. The Borrower’s hotel leadership team has collectively closed and overseen more than $6 billion in hotel real estate transactions and has decades of experience advising and managing all facets of hotel real estate including asset and transaction advisory; investment management; acquisition and development management; construction; and operations management – all elements of a strong Borrower profile.

Given its location near world-renowned Yale University and a regional medical center; low leverage, attractive debt yield, and low per-key basis compared to replacement cost; limited competition in the market and relatively high barriers to entry; apparent rebound of the post-COVID travel industry; the opportunity’s exact fit for the fund's reinvestment mandate; its fit with clearly defined investor preferences; and EastAlliance’s strong and long-standing relationship with this highly experienced operator, this opportunity proved to be a fit.