ESI Ventures debuts Hotel Adeline after $13M renovation
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.