Madison Newbond Hotel Lending Platform provides US$20 million loan for Balfour Hotel

KUALA LUMPUR, Oct 3 (Bernama) -- Madison Newbond announced it has provided a US$20 million loan to FullG Capital’s equity sponsorship group for the acquisition of the Balfour Hotel Miami Beach (the Balfour), an independent boutique hotel located at 350 Ocean Drive in Miami Beach, Florida. (US$1 = RM4.640)

Madison Newbond is the institutional lending platform of Madison Realty Capital and Newbond Holdings that provides first mortgages, mezzanine loans and preferred equity to hotel owners and developers nationwide.

Located within Miami’s famed South Beach Art Deco District and situated less than one block from the beach, the Balfour contains 82 guestrooms across two towers. The hotel is managed by Driftwood Hospitality Management under a third-party hotel management agreement.

“Miami is no longer just a top destination for domestic and international leisure travel, but has rapidly become a growing hub for corporations and financial firms seeking to relocate their headquarters,” said Managing Principal and Co-Founder of Madison Realty Capital, Josh Zegen in a statement.

“We are pleased to provide a flexible financing solution to facilitate the acquisition of a superbly well-located hotel in one of the most liquid and dynamic hospitality markets in the country.”

Meanwhile, Founding Partner at Newbond, Neil Luthra said: “Madison and Newbond’s extensive operating experience enables us to efficiently underwrite hospitality lending opportunities and provide borrowers with a reliable financing partner in today’s choppy credit environment.

“The Balfour perfectly exemplifies this, and we are excited to work with the FullG Capital team to bring their business plan to life.”

Madison Newbond launched in November 2021 with approximately US$500 million of initial lending capacity and has plans to add scale in line with existing opportunities.

More details at www.madisonrealtycapital.com.

-- BERNAMA