Starwood Property Trust has provided Connecticut-based Wheelock Street Capital with $88.6m for the acquisition of Renaissance Las Vegas Hotel in Las Vegas, Nevada, Real Estate Capital has learned.
The two-year floating rate loans carrying a loan-to-value ratio of just under 71 percent come with three one-year extension options. Wheelock Street Capital bought the 14-story luxury hotel for about $124.5m from Texas-based Jackson Shaw, the original developer of the property.
Part of the Renaissance Hotels franchise, a brand owned by Marriott International, the 548-room full-service hotel at 3400 Paradise Road sits across the street from the Las Vegas Convention Center. Built in 2004, the hotel was renovated between 2012 and 2013.
The new owners plan to spend about $6m to enhance the asset and increase net income from the property, said a source familiar with the deal, noting that Wheelock has a good track record of turning assets around.
Wheelock’s relationship with the franchise dates back to July 2011, when an affiliate of the firm acquired the former Renaissance Agoura Hills in Agoura Hills, California, converting it into Sheraton Agoura Hills Hotel.
Wheelock, founded in 2008, has raised four funds to date, the latest of which closed in April of 2014 with $625m in capital commitments. The real estate investment firm focuses on hospitality, retail, multi-family and residential.