Alliance Real Estate Asset Management Group, LLC (“Alliance”} and Rockgate Management Company (“Rockgate”), collectively the “Partners”, have formed Estero Hotel Associates, LLC (“Estero”) to acquire a parcel of land (the “Property”) in Estero, Florida and develop and own a 114-suite TownePlace Suites by Marriott (the Hotel”).
Both Alliance and Rockgate have formed separate entities to invest in Estero and fund the development of the Hotel. Alliance has formed Coconut Point Hotel Venture, LLC (“Coconut Point” or the “Company”) to invest in Estero. Rockgate has formed Kansas City Hotel Group III (“KC Group”) to invest in Estero.
Coconut Point and KC Group will contribute to Estero a total of $3,900,000 of equity to finance a portion of the acquisition and development costs of the Hotel. Estero will finance the balance with a construction and mini-perm loan (the “Financing”) in the amount of approximately $11,800,000 from Valley View Bank. The Financing will be personally guaranteed by Lawrence Gates, an affiliate of Rockgate and KC Group.
The Property is located with the Development of Regional Impact (“DRI”) known as Coconut Point. The largest development within Coconut Point is the Coconut Point Mall, a regional mall developed by Simon Properties.
The Company is currently under construction on a 114 suite Marriott Town Place Suites (the “Hotel”), an extended-stay hotel, on the site in Estero, Florida. TownePlace Suites, an extended-stay hotel brand of Marriott International caters to the mid-priced segment of the market.
The Hotel is expected to be open during the 1st quarter of 2017.
Click on the aerial photo below for a slide show of the building under construction.