GREENWICH, CT—Knighthead Funding LLC has provided King & George Street, LLC with $30.5 million in short-term first mortgage debt for the development of ROOST Charleston, a luxury full-service boutique hotel and 11,003-square-feet of prime retail in Charleston, S.C.
Knighthead’s non-recourse, floating rate loan has a term of 27 months. It is Knighthead’s first financing in South Carolina.
The new mixed-use property will be made up one newly constructed building and three redeveloped historic buildings, located at the northeast corner of King and George Streets in the Lower King section of historic Charleston, which is known for its high concentration of luxury retail stores and restaurants. ROOST Charleston will offer a combination of standard hotel guest rooms and extended stay apartments. Amenities will include a restaurant, a café, spa, outdoor courtyard and ground floor retail shops.
The property’s location in the Historic District, where accommodations are in continual high demand, is a strong indicator of the project’s long-term viability according to Knighthead Vice President of Loan Originations, Brian Sullivan.
“The Charleston market benefits from a variety of tourist and leisure attractions in the area, creating a year-round need for lodging,” said, Sullivan. “We were impressed with sponsorship, which has a proven track record with this property type, having successfully developed several similar hotels in Philadelphia.”
With its tree-lined streets, notable forts and plantations, historic homes, antique shops and art galleries, Charleston has long been a must-see tourist destination. Condé Nast ranked Charleston as the country’s top travel destination for the last eight consecutive years.
“Our acquisition and redevelopment financing will help the Sponsor re-position this asset into a Class-A mixed use property,” said Knighthead Principal Jonathan Daniel. "The property’s highly desirable location, in one of the country’s top travel destinations, will positively contribute to its overall success.”