Winston Hotels, a real estate investment trust (REIT) and owner of premium limited-service, upscale extended-stay and full-service hotels, today announced it has closed on a $5.5 million mezzanine loan to construct a 188-room Residence Inn by Marriott in St. Louis, Mo. The primary lender, Heartland Bank headquartered in St. Louis, provided a $14.5 million loan. The estimated total cost of the project is $25.0 million. “This is a well-located site, in a market where both business and leisure travel demands are rebounding, and includes a leading brand in the fast-growing upscale extended-stay segment,” said Joe Green, president and chief financial officer. “The developer, Dominion Hospitality Group, a division of the Mullenix Companies, has a proven track record with considerable experience in the extended stay segment, and we are pleased to be a part of this project, as we grow our company through our mezzanine loan program. We continue to seek other mezzanine lending opportunities that offer attractive yields, and we have a very active loan pipeline.”
“Through Winston’s program, we were able to secure very competitive financing for this project,” said Mike Mullenix, president of the Mullenix Companies. “Because Winston is also an owner, they brought greater insight and flexibility to the transaction than we have experienced with other lenders.”
The eight-story, 188-room Residence Inn will be situated on a 3.15-acre parcel of land at the intersection of Jefferson Avenue and Highway 40 in downtown St. Louis. Typical to the Residence Inn brand, the all-suite hotel will offer a guest laundry, a breakfast area, a fitness room, and an indoor swimming pool and lounge area. The hotel also will have 2,600 square feet of meeting space.
The property’s immediate neighborhood is dominated by the A.G. Edwards headquarters complex, which contains over 1 million square feet of owner-occupied office space. In addition to A.G. Edwards, the hotel will be proximate to several other corporate demand generators, including Sigma Chemical, Ralston Purina, Ameren Corporation and the medical facilities of Washington University and St. Louis University. Tourist attractions include the city’s three major sports teams, the Cardinals, Rams and Blues, the Gateway Arch, the Riverfront, and the Anheuser Busch Brewery. The hotel will be in proximity to Washington University and St. Louis University. When completed, it will be the first extended-stay hotel in the central business district (CBD) of St. Louis.