BEVERLY HILLS, Calif.–ESI Ventures (ESI)—a commercial real estate investment firm that acquires, develops, and executes value-add and adaptive reuse projects—recently completed the renovation and refinance of Hotel Adeline in Scottsdale, Arizona, marking their first venture into the hospitality space. After concluding a $13 million renovation to the property, located at 5101 North Scottsdale Road, the firm successfully refinanced its development loan and transitioned to a bridge loan totaling more than $33 million.
“We are thrilled to debut Hotel Adeline as our first foray in the hospitality sector,” Brandon Wolsic, executive vice president of ESI, says. “This refinance, funded by Värde Partners, replaced the expensive development debt with more favorable bridge debt and allows us to work towards stabilization.”
ESI Ventures reopened the doors of its boutique hotel in Old Town Scottsdale after renovating with contemporary design with a bohemian twist. The 213-room hotel has new accents throughout including an eclectic mix of textures, furniture groupings of leather and wooden pieces atop geometric patterned rugs, sleek metallic fixtures, and curated, Arizona-influenced artwork. Additional details include modern wood furniture with a retro flair, built-in live edge work desks, walk-in rainfall showers, 50-inch LG Smart TVs, and complimentary WiFi access throughout the hotel. The company plans to make even more improvements in the near future, aided by the new bridge loan’s lowered interest rate.
The refinance of the 4.5-acre property was brokered by George Smith Partners, a real estate capital advisory group.
“We are honored to have been involved with this amazing hotel. The capital markets responded favorably due to Hotel Adeline’s downtown Scottsdale location, incredible offerings, and the strength of the ESI sponsorship,” Malcolm Davies, principal/managing director of George Smith Partners, says.
The hotel includes five 700-square-foot king suites, a full-service Mediterranean-American restaurant and lounge, a fast-casual breakfast and lunch café with a late-night grab-and-go bar, a fitness center, a 3,000-square-foot zero edge pool with pool bar, communal areas, and 1,800 square feet of private event space. The property is managed by HRI Lodging, a subsidiary of HRI Properties, LLC.