Dec. 10, 2018 – National real estate investor and developer Lightstone today announced the close of $73 million in financing from Canyon Partners Real Estate LLC® (“Canyon”) and CapitalSource, a division of Pacific Western Bank, to develop the 7-story, 202-key Moxy South Beach.
The financing package consisted of a $55 million senior loan from CapitalSource and an $18 million preferred equity investment from Canyon. This investment marks Canyon’s fifth investment with CapitalSource and second with Lightstone.
The first Moxy-branded hotel in Florida, Moxy South Beach, will be located at 915 Washington Avenue, two blocks from the world-famous beach on Ocean Drive. The hotel will be steps away from South Beach’s trendy and iconic restaurants, nightlife and shopping on Washington and Collins Avenues, and Ocean Drive. Moxy is an urban lifestyle brand by Marriott featuring large, active public spaces and well-designed, efficient guest rooms, offering guests affordability without sacrificing style or comfort.
“The Moxy brand is playful, vibrant and chic and aligns perfectly with the attitude of South Beach and the travelers it attracts,” said Lightstone’s President Mitchell Hochberg. “Canyon has extensive experience deploying capital in Florida and we’re happy to be working with them, in close collaboration with CapitalSource, to execute this transaction.”
Moxy South Beach will span 78,000 gross square feet, and its lobby will feature an outdoor courtyard that threads together a series of spaces, including a restaurant; all-day bar; Cuban-themed bodega offering stylish beach accessories; and a co-working lounge which transitions into meeting studios. The second floor will feature a 72-foot pool, fitness center, and outdoor bar. The rooftop space offers unobstructed views of Miami Beach, a large shallow pool to cool off in, and a screening area.
Moxy South Beach adds to Lightstone’s growing hotel development portfolio, including Moxy’s 612-room flagship property in Times Square which opened last year and was named 2017 Development of the Year by the Americas Lodging Investment Summit (ALIS).
Lightstone is opening Moxy Chelsea in New York this February, where TAO Group will debut brand-new dining and drinking concepts in collaboration with Francesco Panella of the acclaimed restaurant Antica Pesa in Rome and Brooklyn. Lightstone is also developing Moxy hotels in Downtown Los Angeles as well as New York’s East Village and Lower East Side.
Lightstone’s hospitality portfolio features 28 properties totaling 4,000 keys across the country and includes partnerships with Marriott, Starwood, Hilton, IHG, and Hyatt.
Canyon has a long track record of investing in the hotel sector, focusing on providing capital for the development or repositioning of branded hotels with 100+ keys in primary and secondary US markets. Over the past ten years, Canyon has made over $500 million of debt and equity investments, supporting the financing of approximately $1.2 billion of hospitality assets nationwide. Canyon also has extensive experience deploying capital in Florida, having invested approximately $1 billion of debt and equity over the last decade, supporting the financing of approximately $2.5 billion of assets.