Walker & Dunlop, Inc. secured a $112.5-million loan to refinance the Ace Hotel Brooklyn, a 13-story, 154,947 square foot, 287-room full-service hotel located at 252 Schermerhorn St. in Brooklyn. Walker & Dunlop Capital Markets Institutional Advisory arranged the transaction for an affiliate of GFI Capital Resources Group, Inc. and Spruce Capital Partners. 

Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Dustin Stolly, Michael Brown, Sean Bastian, and Cole Grims arranged the leasehold bridge loan from Torchlight Investors. Loan proceeds will be used to retire existing senior debt and preferred equity, including that provided by Corten Real Estate, as well as to fund closing and financing costs.

“New York City remains the most supply-constrained hotel market in the country, driven by significant regulatory barriers including the Safe Hotels Act, zoning amendments requiring special use permits, and Local Law 18, which restricts short-term rentals,” said Brown. “These factors have limited new hotel development, reduced existing supply, while tourism demand continues to surge, with more than 64 million visitors expected in 2025. We are pleased to support and arrange this transaction alongside our valued partners at GFI Development, Spruce Capital Partners and Torchlight.”