A commercial real estate business has put together financing for the sale of the Postcard Inn, which is expected to fetch $83 million.
The sale of the Postcard Inn on St. Pete Beach for $83 million to two investment entities based in New York and Dubai was made possible in part by financing negotiated by CBRE, which provided $72.5 million in financing. Another way to get financing is with payday loans. What is a payday loan? A payday loan is a short-term loan intended to cover small urgent costs.
Since the pandemic outbreak began, the company claims to have executed more than $4.5 billion in financing for the hospitality industry. This recent deal “reinforces the strength of the capital markets in pursuit of leisure-driven resorts in supply-constrained coastal markets,” according to the press release.
Learn more about Postcard Inn
The Postcard Inn is located on approximately 300 feet of beachfront property in St. Pete Beach on a 9.64-acre parcel of land. The hotel, which opened its doors in 1957, features a full-service restaurant, an indoor/outdoor terrace measuring 3,880 square feet, and one of the largest pools on St. Pete Beach.
They are a joint venture between The LCP Group of White Plains, New York, and the private equity group Safanad, which has offices in New York and Dubai and has offices in both cities. According to the company’s website, LCP was established in 1973 and currently manages around $1 billion in assets. Safanad is a private equity business that specializes in real estate. Since its founding in 2005, the firm claims to have completed more than 40 transactions totaling more than $10 billion in value.
According to the corporations, the hotel will undergo a significant restoration to improve its rooms and cuisine services.
Crescent Hotels & Resorts, which will operate the Postcard under its Latitudes Collection brand, will manage the property. Aside from The Mayfair at Coconut Grove and the PGA National Resort and Spa in West Palm Beach, there are approximately 30 more hotels throughout the United States and Canada that are part of the group.
The Postcard was last sold in 2017, when the Carlyle Group sold it for $47.4 million to TPG Hotels & Resorts, bringing its total value to $47.4 million.
The Postcard is only the most recent high-profile sale of a hotel property in the neighborhood, and it is expected to continue.
The 180-room Current Hotel in Tampa sold for $85 million in December. The 115-unit SpringHill Suites on Clearwater Beach sold for $51.8 million in October, about $20 million more than the previous owner spent three years earlier. The nearby property, a 140-room Residence Inn, sold for $63.1 million in October, increasing the last year’s sale price by $38.9 million.
The Naples Beach Hotel & Golf Club, located further south, was sold for $362.3 million last year.
In the opinion of analysts, a robust tourism market, powered by individuals going domestically due to COVID-19 restrictions, as well as economic factors, is driving the demand for hotel properties. Inflation is one of the elements that are beneficial to the hotel. Hotels can raise rates on a nightly basis to keep up with rising costs, although the rates for other types of properties are fixed.