Business & Finance

HFF Announces $19.5M Refinancing for Suburban Milwaukee Sheraton Hotel

SAN DIEGO, CA. November 13, 2017 Ė Holliday Fenoglio Fowler, L.P. (HFF) announces the $19.5 million refinancing for Sheraton Milwaukee Brookfield Hotel, a 389-room, upscale, full-service hotel in the Milwaukee suburb of Brookfield, Wisconsin.

Working on behalf of the borrower, LLJ Ventures, HFF placed the three-year, floating-rate loan with two one-year extensions with Blue Vista Finance LLC. Loan proceeds will be used to pay off the hotelís existing loan and to fund additional strategic capital improvements.

Sheraton Milwaukee Brookfield Hotel is a six-story hotel completed in 1972 that, in 2014, underwent an extensive $4.3 million renovation to upgrade and modernize. The hotel features more than 19,000 square feet of flexible meeting space, a 24-hour business center, fitness center, indoor and outdoor heated pools, the recently opened The Craft Room restaurant and the Sheraton Club. Located at 375 South Moorland Road, Sheraton Milwaukee Brookfield Hotel is just off Interstate 94 and adjacent to the Brookfield Square Mall and Westmoor Country Club. The hotel provides easy access to a variety of demand drivers, including Miller Park, the Harley Davidson Museum, Milwaukee County Zoo, Midwest Airlines Center and numerous breweries throughout the Milwaukee metropolitan area.

The HFF debt placement team representing the borrower included managing director Scott Hall, senior director Jeff Bucaro and real estate analyst Aaron Lapping.

About LLJ Ventures

LLJ Ventures is the private equity arm of the LM Group, which was founded in 1983 in San Diego, California. Today, the group manages more than $7 billion of assets in its three divisions: LM Capital (institutional fixed income), LM Advisors (high net worth families) and LLJ Ventures (Private Equity with a Real Estate Focus). For more information, visit lljventures.com.

About HFF

HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

Coming Up In The December Online Hotel Business Review

Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotelís operation that isnít touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law Ė real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott Internationalís acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important Ė the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding itís much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.