D2 Capital Advisors arranged $23.5 million in construction financing for the development of a new Residence Inn by Marriott in the Chestnut Run Innovation & Science Park in Wilmington, Del. The 127-key, 90,0000-square-foot extended-stay hotel by Marriott is being developed by CRISP Hotel Partners, a joint venture between MRA Group, a developer of life-science campuses, and Gulph Creek Hotels, a hospitality developer and operator.
The construction financing was arranged by Philadelphia-based D2 Capital Advisors' Jack Cortese, David Frankel and John Lightcap. The financing was provided by WSFS bank and Nuveen Green Capital.
Mixed-Use Development
Located within the Greenville suburb of Wilmington, the new hotel will be surrounded by an established and growing cohort of corporations. Immediately adjacent is both DuPont and Corteva's global headquarters. The hotel will also serve various corporations within CRISP, including Prelude Therapeutics, Solenis and Celanese.
MRA Group acquired the property in December 2021 and began a phased redevelopment of the CRISP campus, which will eventually total over 1.3 million square feet. MRA then partnered with Gulph Creek Hotels for the Residence Inn by Marriott development and with D2 Capital Advisors to structure the construction financing for the hospitality asset.
"D2's hotel financing experience and creativity in structuring the capital stack were extremely valuable to us throughout the financing process," phil butler, executive vice president and partner of MRA Group, said in a statement. "Their team's flexibility, determination and understanding of our objectives were significant drivers in D2's ability to structure the financing in this complex lending environment."
The capital stack was comprised of senior bank debt, C-PACE, subordinate D-PACE, and partner equity.
"Having a strong established sponsor in MRA Group and Gulph Creek Hotels with experience and a track record of success was fundamental in securing hotel construction financing" said Jack Cortese, vice president of D2 Capital Advisors. "Still, the multilayered capital stack presented hurdles that we, the sponsor, and the lenders, were collectively able to overcome and deliver a cost efficient and flexible financing solution."
Construction is set to begin this month with a projected delivery date in the summer 2026. IMC Construction is serving as the construction manager.