PGIM Real Estate provides $150M in fixed-rate financing for JW Marriott Tampa Water Street
Jul 29, 2022
PGIM Real Estate has provided $150 million 10-year interest-only fixed-rate financing on behalf of its core debt strategy to Strategic Property Partners for its financing of their JW Marriott hotel in Tampa, Florida. PGIM Real Estate is the $208.7 billion real estate investment and financing business of PGIM.
The 26-story luxury hotel is a part of the Water Street development in downtown Tampa, and was completed in December 2020, marking the area’s first four-star hotel. It contains 519 guest rooms as well as 69,946 square feet of meeting space. When combined with the existing 727-room Marriott and soon-to-be-completed 172-room Edition Hotel, the group will be able to offer over 1,400 rooms to accommodate increasing activities at both the adjacent Amalie Arena and the Tampa Convention Center.
“Hotels were hit hard during the onset of the COVID-19 pandemic, but with the strong economic recovery we saw in the second half of 2021, we saw major improvements overall and an opportunity to make loans in this sector,” said Melissa Farrell, head of Debt Originations at PGIM Real Estate. “The JW Marriott hotel is a well-balanced investment with the multiple demand drivers of the neighborhood, the convention center, and nearby arena helping to secure broader group and transient business that allows better performance overall. The deal is indicative of our ability to invest across property types and see value in diversified drivers.”
“While we were just coming out of COVID restrictions and forecasting property performance was uncertain, the uniqueness of the overall Water Street Tampa project and synergistic benefits of all the collective components made this a unique opportunity for a new hotel mortgage investment for PGIM Real Estate,” said Tom Goodsite, managing director at PGIM Real Estate, who led the transaction on the firm’s behalf. “We were glad to have had the opportunity to work with the borrowers on their continued transformation of Water Street.”
Water Street Tampa, a $3.5 billion-plus planned district, on a 56-acre stretch of waterfront that had been mostly parking lots, is wrapping up its first phase of construction in the shadow of Amalie Arena, home of the Tampa Bay Lightning hockey team. The Strategic Property Partners development is a joint venture between the Lightning’s owner, Jeff Vinik, and Bill Gates’ Cascade Investment.
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