MIAMI, Florida—Driftwood Capital announced the launch of Driftwood Hotel Income I, DST, its inaugural Delaware Statutory Trust (“DST”) platform, offering eligible investors access to a quality hotel for 1031 exchange investors. The offering is expected to target approximately $23.9M in equity commitments and use approximately $17.75M of debt, representing an expected loan-to-value ratio of approximately 43 percent LTV.
The offering is anchored by the Courtyard by Marriott Fort Lauderdale Weston, a 176-key hotel in Weston, Florida, just west of Fort Lauderdale. The property was acquired at a true purchase price of $35.5M, which includes the Bill of Sale, and it is located less than five minutes from Interstate 75. The hotel provides direct access to the greater Fort Lauderdale area and South Florida region while benefiting from nearby corporate and healthcare demand generators.
Driftwood currently expects to evaluate additional DST opportunities, potentially expanding its DST portfolio with compact full-service, premium-branded select-service, and extended-stay hotels in markets Driftwood believes demonstrate attractive corporate and leisure travel demand based on its underwriting.
Statement From Leadership
“The hospitality sector has long offered compelling risk-adjusted opportunities for investors. With the launch of Driftwood Hotel Income I, DST, we are continuing our commitment to expanding opportunities for 1031 exchange investors, providing an additional investment option for eligible 1031 exchange investors seeking passive exposure to hospitality real estate,” said Carlos Rodriguez Jr., president and chief executive officer of Driftwood Capital. “A natural extension of our overall platform, the offering is backed by a property that is well-positioned within a supply-constrained submarket, an example of our decade-long approach supported by Driftwood’s hospitality underwriting and asset-management experience.”
