Newmark has successfully arranged a $28,300,000 construction loan ($25.3 million is senior and $3 million is a bridge loan) for the redevelopment of the historic Midland Building in Des Moines, Iowa. Chicago-based Aparium Hotel Group will complete a nearly $48,000,000 development project to renovate the property into a four-star hotel.
Located at 206 Sixth Avenue in Des Moines, the 12-story, century-old Midland Building will be transformed from an office tower into a luxury, 137-room boutique hotel. Construction has commenced and when completed will feature a full-service restaurant, 200-person ballroom, meeting rooms, conference rooms and an outdoor courtyard. Aparium Hotel Group, who purchased the Midland Building in February 2017, will manage the hotel. The firm is known for renovating historic buildings into upscale hotels and has a portfolio of lodgings around the Midwest, including, Minneapolis, Detroit, Kansas City and Omaha.
Executive Managing Director Ben Greazel of Newmark’s Chicago Capital Markets group originated the construction loan on behalf of the borrower. Greazel secured the financing with First National Bank of Omaha.
“We are fortunate to assist our long-time client, Aparium, with a solution to its financing needs,” said Greazel. “The hotel will be a first-class, dynamic project that will be an amazing addition to downtown Des Moines.”
About Aparium Hotel Group
Founded in 2011, Aparium Hotel Group is a Chicago-based, leading lifestyle hotel company owned and operated by industry veterans accomplished in hotel development, management and marketing. Aparium Hotel Group’s growth is guided by its “Translocal Hospitality” philosophy, which is the belief that great hotels are a destination sought out by travelers and a place that thrives as a gathering hub for locals. Adept in both adaptive reuse projects and ground-up developments, each of Aparium Hotel Group’s properties are independent brands and celebrate the specific neighborhoods and unique history of the distinct cities in which they reside. Aparium Hotel Group currently operates twelve hotel properties across the United States with six new projects in various stages of development. For more information about Aparium Hotel Group, please visit www.aparium.com.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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