Overview
International law firm McDermott Will & Emery represented Driftwood Capital in the formation of Driftwood USA Hotels Portfolio, LP (the Fund). The Fund was formed to consolidate and recapitalize a $1.2 billion portfolio encompassing 18 flagged hotels with 4,203 rooms across 10 states, including California, Texas, Florida, North Carolina, Utah, and New York. Driftwood has invested nearly $370 million in the hotels and this portfolio in recent renovations and new developments.
The transaction was capitalized with a $330 million securitized mortgage loan from Wells Fargo encumbering 9 properties and $85 million in preferred equity from Acore Capital investing in eight properties. The project progressed over seven months of work from a multi-disciplinary McDermott team to address all aspects of the transaction, including fund formation, tax structuring, securities issues, mortgage financing, and obtaining investor and lender consents. The financing closed notwithstanding, nearly unprecedented market volatility.
McDermott regularly advises Driftwood Capital and its affiliates in its financing and refinancing transactions, including a $257 million financing package related to the under-development of the 502-key Westin Cocoa Beach Resort & Spa. A portion of which was a $137 million C-PACE financing – the largest ever done in Florida. McDermott also represents Driftwood’s lending arm, which provides mezzanine loans on hotel properties nationwide.
The McDermott real estate team was led by Jeffrey Steiner and Scott Weinberg with invaluable assistance from Robert Unger, Megan Vallerie, Mohsen Ghazi, Gary Karch, Danny Min, Robert Mower, Alexis Biegen, Hayley Yandoli and Ed Pisacreta.
The McDermott investment funds team was led by Ian Schwartz with support from Erica Moscarello, Nate Barnett, Lauren Dehasque, Marina Leary, Adam Schoen, Nana Agyeman Taylor, Heidi Steele, Timothy (Ty) Carson, and Brittany Esser.
Jeffrey Steiner is the relationship partner for Driftwood Capital.
About McDermott
Leading organizations turn to global law firm McDermott Will & Emery for a better way to address legal challenges, connect with those at the forefront, and drive stronger outcomes. Working across more than 20 offices globally, our 1,400+ lawyers act on data-driven insights, deep relationships, and unmatched industry experience to deliver on our commitment of Always Better.
