Co-Developer/JV Equity for Phoenix CBD Fairmont Hotel and Condo Development

June 30, 2022

The Carlton Group is exclusively engaged with the sponsors of The Blue – a premier development of a 5-star Fairmont Hotel and branded residences in downtown Phoenix (“Project”). The $333 million Project will consist of 230 hotel rooms and 151 condominiums on a site within an Opportunity Zone. The sponsors are an entrepreneurial partnership who already own the site and have assembled a best-in-class team which includes renowned architect Gensler and hotel management company (and owner of the Fairmont brand) Accor Hospitality.

We are requesting $62 million of JV equity to co-invest with the sponsors. A Co-GP structure will also be considered from investors with development expertise.

Attached is the investment memorandum. More info is available upon request.

 

 

 

Project Highlights:

• Projected deal level returns greater than 29% IRR and 2.8x equity multiple (exclusive of OZ benefits).
• The Project is situated in immediate vicinity of major demand generators include the Footprint Center – basketball arena home of the Phoenix Suns (across the street), Chase Field – baseball stadium home of the Arizona Diamondbacks (2 blocks), the Phoenix Convention Center (4 blocks) and much more.
• Phoenix became the fifth largest city in the U.S. (2020 Census), growing more than 11% since 2010.

 

 

Contact:

Paul Wolfson | Director

360 Madison Avenue, 3rd Floor | New York, NY 10017

+1 917.332.2058 Office | +1 914.393.4988 Mobile

Email: pwolfson@carltongroup.com

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