B
D Hotels, led by Richard Born, secured a $75 million construction loan for The Nora Hotel in downtown West Palm Beach's Nora District. The six-story hotel will feature 201 keys and marks BD's first venture outside of New York, where the firm operates several independent hotels.
The financing was provided by Metropolitan Commercial Bank, with Steven Klein and Mark Fisher of JLL representing the borrowers. The hotel is part of a larger development project in the Nora District, which spans 40 acres and includes three main areas: retail and office space, high-rise developments, and preserved single-family homes.
Pastis, a New York restaurant owned by Stephen Starr's Starr Restaurants, has preleased 13,300 square feet of ground-floor space at The Nora Hotel. The hospitality firm will also partner on the hotel's rooftop restaurant and lounge.
The deal is significant as it shows that South Florida construction lending is still active despite elevated interest rates. Much of the financing in recent months has been for multifamily and luxury condo projects, but this deal indicates a growing interest in the hotel market.
In related news, other developers are also pursuing hotel projects in South Florida. North Development proposed a 43-story hotel in Miami's Brickell, while Terra and Turnberry received approval for a $75 million taxpayer infusion to help with construction costs on their stalled Miami Beach Convention Center hotel project.
