The 203-room DoubleTree Suites Detroit Downtown Fort Shelby is set to undergo a $42 million renovation and conversion to Embassy Suites by Hilton by Hotel Ventures Fort Shelby, an investment entity organized by Peter Beukema, CEO of Zeeland-based 6PM Hospitality Partners.
The project is made possible, in part, by $14.5 million of preferred equity investment from Peachtree Group, a Georgia-based vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate.
The Fort Shelby project is designed to enhance the property’s long-term value through brand elevation, targeted capital improvements, and operational enhancements.
“This investment reflects how we’re approaching today’s market,” says Greg Friedman, managing principal and CEO of Peachtree Group. “We’re seeing a meaningful opportunity set driven more by market dislocation than distress.
“Capital remains available, but often not in the right form or at the right level of the capital stack. By providing flexible capital solutions, we can help sponsors execute attractive business plans while maintaining a disciplined focus on downside protection and positive, risk-adjusted returns.”
Located at 525 W. Lafayette Blvd. in downtown Detroit, the Fort Shelby was built in 1917 and today has 203 rooms, 56 apartments on its upper floors, a 21,000-square-foot conference center with two ballrooms, 17 breakout rooms, Motor City Kitchen, and a coffee shop.
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