ESI Ventures Succeeds with New Foray into Hospitality

ESI Ventures | May 14, 2018

ESI Ventures (ESI), a diversified commercial real estate investment firm that acquires, develops and executes value add and adaptive reuse projects, completes the renovation and refinance of Hotel Adeline in Scottsdale, Arizona, marking their first venture into the hospitality space. After concluding a $13 million renovation to the property, located at 5101 N Scottsdale Road, the firm successfully refinanced its development loan and transitioned to a bridge loan totaling $33,225,000.

“We are thrilled to debut Hotel Adeline as our first foray in the hospitality sector,” says Brandon Wolsic, Executive Vice President of ESI. “This refinance, funded by Värde Partners, replaced the expensive development debt with more favorable bridge debt and allows us to work towards stabilization.”

ESI Ventures reopened the doors of its boutique hotel in Old Town Scottsdale after a well-received and successful renovation featuring a sleek updated contemporary design with a bohemian twist. The 213-room hotel features new accents throughout including an eclectic mix of textures, comfortable furniture groupings of leather and wooden pieces atop geometric patterned rugs, sleek metallic fixtures and carefully curated Arizona influenced artwork. Additional details include modern wood furniture with a retro flair, built-in live edge work desks, walk-in rainfall showers, 50-inch LG Smart TVs and complimentary Wi-Fi access throughout the hotel. Additional improvements are scheduled for the near future, allowed for by the new bridge loan’s lowered interest rate.

The refinance of the 4.5-acre property was brokered by George Smith Partners, a real estate capital advisory group.

“We are honored to have been involved with this amazing hotel. The capital markets responded favorably due to Hotel Adeline’s downtown Scottsdale location, incredible offerings and the strength of the ESI sponsorship,” said Malcolm Davies, Principal/Managing Director of George Smith Partners.

The boutique hotel includes five 700-square-foot king suites, a full-service Mediterranean-American restaurant and lounge, a fast-casual breakfast and lunch café with a late-night grab-and-go bar, a state-of-the-art fitness center, a 3,000-square-foot zero edge pool with trendy pool bar, buzzing communal areas and 1,800 square feet of private event space. Located in Old Town Scottsdale, the property is managed by HRI Lodging, a subsidiary of HRI Properties, LLC.

ESI has an established track record within the multi-family and commercial space, both in Arizona and nationally.  It recently sold one of its multi-family properties, Madison Grove, in Phoenix for 4x its purchase price and has invested in a 290-acre mixed-use business park in Surprise, Arizona.  The firm leverages its in-house expertise and capital resources to acquire and reposition assets in core markets throughout the Western United States.

For more information on ESI Ventures, please visit ESIVentures.com.  To learn about accommodations or meeting/event spaces available at Hotel Adeline, visit HotelAdeline.com.

About ESI Ventures
ESI Ventures is a diversified commercial real estate investment firm that acquires, develops and leads the industry in value add and adaptive reuse projects.  The firm has built an impressive portfolio of lifestyle properties among a myriad of asset classes, with a strong focus on rehabilitating and reimagining existing structures into new spaces.  Since its founding in 1998, ESI has acquired, repositioned and developed assets valued in excess of $1 Billion.  ESI Ventures is headquartered in Beverly Hills, CA and is backed by its parent company E&S International Enterprises.  For more information, visit www.ESIVentures.com.

About Hotel Adeline
Hotel Adeline is a stylish new boutique hotel in Scottsdale, Ariz. Following a $13 million renovation, the contemporary urban retreat offers 213 guestrooms including five spacious 700-square-foot king suites, a full-service Mediterranean-American restaurant and lounge, a fast-casual breakfast and lunch café with a late-night grab-and-go bar, a state-of-the-art fitness center, a lively pool scene and pool bar, buzzing common areas and 1,800 square feet of private event space. For more information, visit www.hoteladeline.com.

About HRI Lodging
HRI Lodging, LLC, a subsidiary of HRI Properties, LLC, provides hotel management services for both HRIP owned and third-party owned properties. HRI Lodging is one of the 50 largest hotel management companies in the U.S. as ranked by Hotel Business. HRI Lodging operates 26 hotels and is an approved operator for premium branded and independent hotels. For more information, please visit our website at www.hrilodging.com.

About George Smith Partners
Celebrating 25 years in business, George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity.  The company has arranged more than $44 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.

About Värde Partners
Värde Partners is a $13 billion global alternative investment firm that employs a value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, mortgages, corporate credit, specialty finance, real assets and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Founded in 1993, Värde employs nearly 300 people globally with regional headquarters in Minneapolis, London and Singapore.

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