Boutique hotel conversion for Massachusetts apartment building

George Sell By George Sell
1 week ago | Updated 1 week ago

US: Knighthead Funding, LLC has originated a $37.75 million loan for the completion of an upscale independent 67-room hotel in Cambridge, MA.

The developer, a local partnership operating as Sean Casey, LLC, will complete the transformation of a four-storey multifamily building into a 67-room boutique hotel that will include ground floor retail, restaurant and the addition of a 10,000-square-foot fifth floor penthouse with a rooftop lounge.

The property is located at the corner of Columbia Street and Main Street, in an area of Cambridge known as Central Square. The neighbourhood has benefitted from significant public and private investment with several new developments in process. The hotel, expected to open in the first quarter of 2020, will be managed by Hay Creek Hotels, which operates 19 boutique hotels across the country.

"Cambridge is one of the strongest hotel markets in the United States, with occupancy rates above 80 per cent. Our capital will help the sponsor complete the construction and bring this property online to meet the growing demand for hotel rooms in the market," said Brian Sullivan, Knighthead Funding's vice president who originated the loan.

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