Walker & Dunlop Secures $112.5M Refinance for Ace Hotel Brooklyn

Walker & Dunlop, a leading commercial real estate finance and advisory firm, has arranged a $112.5 million refinancing package for Ace Hotel Brooklyn, reinforcing investor confidence in one of New York’s most vibrant hospitality markets.

The deal, secured on behalf of an affiliate of GFI Capital Resources Group and Spruce Capital Partners, provides a leasehold bridge loan that retires existing senior debt and preferred equity while funding closing costs for the 13-story, 287-room full-service property.

Ace Hotel Brooklyn is situated at the intersection of Fort Greene, Boerum Hill and Downtown Brooklyn, an area known for its cultural attractions, retail vibrancy and strong connectivity to Midtown Manhattan via multiple subway lines.

Hospitality financiers say the size and structure of the refinancing reflect broader investor appetite for stabilised urban hotel assets where tourism and business travel demand remain robust despite ongoing supply constraints in core markets.

The refinancing was arranged by Walker & Dunlop’s Capital Markets Institutional Advisory team, which has a track record of placing structured capital for major urban hotel transactions and other commercial real estate assets.

Brooklyn’s hotel market has been marked by evolving regulatory factors and limited new supply, creating a supportive backdrop for existing hotel valuations as visitor traffic and RevPAR growth continue to outpace national averages.

Beyond the refinancing itself, the transaction underscores the importance of proactive capital strategy for lifestyle hotel brands in gateway cities. Strong underlying fundamentals and location-driven demand have made properties like Ace Hotel Brooklyn attractive to both institutional investors and lenders seeking yield in a competitive fixed-income environment.

Market participants also cite the convergence of leisure and business travel in New York as a key driver for sustained hotel performance, with hospitality operators and owners increasingly focusing on mixed-use and experiential offerings to capture diverse revenue streams.

As financing activity in hotel capital markets remains active, transactions such as the Ace Hotel Brooklyn refinancing illustrate the role of structured debt solutions in supporting operational stability and future strategic growth.