#United States #Wilmington #D2 Capital Advisors #Residence Inn

Major Investment in Wilmington's Hospitality: D2 Capital's $23.5 Million Financing

In a significant move for both the local economy and the hospitality sector, D2 Capital Advisors has successfully secured a remarkable $23.5 million in construction financing for a new Residence Inn by Marriott. This new extended-stay hotel will be located in the Chestnut Run Innovation and Science Park (CRISP) of Wilmington, Delaware. The new facility, comprising 127 keys and covering an area of 90,000 square feet, aims to cater to the area's growing demand for quality accommodations.

This ambitious development is made possible through a collaboration between CRISP Hotel Partners LLC, which represents a merger between MRA Group—known for its leadership in life sciences campus developments—and Gulph Creek Hotels, an established figure in the hospitality field. This joint venture aligns perfectly with the area's growth trajectory, particularly in light of its proximity to major corporations like DuPont and Corteva, which have their corporate headquarters nearby.

The financing was meticulously arranged by a team from D2 Capital Advisors, including industry professionals Jack Cortese, David Frankel, and John Lightcap. Their efforts were supported by significant financial contributions from WSFS Bank and Nuveen Green Capital, who stepped in to back this promising venture fully.

To understand the backdrop of this financing deal, it is crucial to consider Wilmington's strategic location. It is home to a thriving business environment enriched by several major corporations, making it a prime site for extended-stay accommodations. The proposed Residence Inn will not only serve corporate clients but will also attract leisure travelers drawn to the Brandywine Valley, known for its scenic routes and events.

MRA Group initially acquired the land in December 2021, embarking on a phased redevelopment plan for the CRISP site. Their vision is expansive, aiming to develop over 13 million square feet of mixed-use spaces that would turn the CRISP campus into Delaware's hub for scientific innovation and advanced manufacturing. The partnership with Gulph Creek Hotels to develop the Residence Inn aligns with MRA's long-term goals of enhancing the area’s hospitality landscape.

Phil Butler, MRA Group's Executive Vice President and Partner, praised D2’s role in the financing process, noting how critical their hotel financing expertise and agility proved to be in navigating complex financing realities. This flexibility and a deep understanding of stakeholder objectives are what made the financing feasible.

The financial structure involved a multi-layered capital stack, including senior bank debt, C-PACE financing, subordinate D-PACE financing, and partner equity. This elaborate setup underscores the collaborative efforts needed to overcome potential challenges and deliver a streamlined and cost-effective financing solution.

Jack Cortese, Vice President at D2 Capital Advisors, emphasized the importance of having experienced partners like MRA Group and Gulph Creek Hotels involved. Their robust track record made securing the necessary financing much more manageable, even with the complexities inherent in such multi-faceted capital arrangements.

Construction is anticipated to commence shortly, with a targeted completion date set for the summer of 2026. IMC Construction will oversee the project as the construction manager, and stakeholders are eager to realize this vision that promises to enhance Wilmington’s accommodation offerings significantly.

In summary, D2 Capital Advisors plays a transformative role in this lucrative development, finely balancing the needs and objectives of investors, developers, and the local community. This project represents not just a new hotel but a key investment in Wilmington's future and a testament to the strategic foresight of its stakeholders.