New York, March 29, 2018 - Warshaw Burstein, LLP and Akerman LLP used experience and creativity to raise additional preferred equity in addition to the existing owner equity and EB-5 financing led by Robert Lubin, a leading EB-5 specialist and his firm American Investor Immigration Funds LLC, all based in Herndon, VA to enable a 175 room Hyatt House on International Drive in Orlando. The hotel is scheduled to open by the end of the year.
The hotel is located approximately one mile from the gates to Universal Studios and is owned by 5370 Holdings, LLC and being developed by 5370 International Drive Associates, LP.
Warshaw Burstein, led by Michael Zukerman, and Akerman LLP, led by Robert A. Leapley, Jr., served as counsel in the transaction. Mr. Zukerman introduced a new broker to seek additional financing. A preferred equity investor was found and agreed to fund $7 million. Robert Lubin provided key support in facilitating all aspects of the transaction.
The structure of the deal was changed to admit the preferred equity by creating a joint venture between the preferred equity investor and the developer. The first mortgagee needed to approve a loan modification. The owner had to negotiate a loan modification of the first mortgage and the new preferred equity investment simultaneously.
“The Hyatt House project in Orlando is another example of how Warshaw Burstein combines knowledge and skill to enable our client to meet the challenge of financing a major real estate project,” said Fred R. Cummings, Jr., the firm’s managing partner. “This transaction will provide long-term benefits both to the developer of the hotel and to the many people who will stay there during trips to Orlando.”
Warshaw Burstein, LLP, with roots going back to 1927, is a full-service mid-sized law firm with offices in New York City that has comprehensive experience representing a wide range of international, national and local businesses of all sizes, as well as governmental authorities and many prominent families and individuals, in an extensive array of litigation and transactional matters. More information about the firm is available at www.wbny.com.
Akerman LLP is a client-driven enterprise, recognized by Financial Times as among the most forward-thinking law firms in the industry. Ranked among the top 100 law firms in the United States, with a reach that extends across the Americas and globally, Akerman is known for results in middle market M&A and complex disputes, and for helping clients achieve their most important business objectives in the financial services, real estate, and other dynamic sectors. More information about the firm is available at www.akerman.com.
Published: Frederick R. Cummings, Jr, 3 July, 2018