Ace Hotel Brooklyn Secures $112.5 Million Loan for Refinancing

Walker & Dunlop has secured a $112.5 million loan to refinance the Ace Hotel Brooklyn, a 287-room property in New York.

Walker & Dunlop, Inc. has announced the arrangement of a $112.5 million refinancing loan for the Ace Hotel Brooklyn, located at 252 Schermerhorn Street in Brooklyn, New York. The 13-story hotel encompasses 154,947 square feet and offers 287 rooms.

The transaction was facilitated by Walker & Dunlop Capital Markets Institutional Advisory for an affiliate of GFI Capital Resources Group, Inc. and Spruce Capital Partners. The leasehold bridge loan was provided by Torchlight Investors, with Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Dustin Stolly, Michael Brown, Sean Bastian, and Cole Grims involved in arranging the deal. The loan proceeds will be used to retire existing senior debt and preferred equity, including Corten Real Estate’s, and to cover closing and financing costs.

Ace Hotel Brooklyn is situated at the intersection of Fort Greene, Boerum Hill, and Downtown Brooklyn. The location provides access to six subway lines, offering direct service to Midtown Manhattan in under 30 minutes. The hotel is surrounded by cultural landmarks such as the Brooklyn Academy of Music and Barclays Center, and is near the boutique-lined neighborhoods of Boerum Hill and Brooklyn Heights.

The hotel features food-and-beverage and event operations, including Lele’s Roman, a Roman cuisine restaurant, and Koju, a Japanese omakase concept. It also has three leased ground-floor retail spaces occupied by Black Seed Bagels, Take Me With You, a gift boutique, and Finer Sounds, a record store. Additional amenities include event space, a ballroom, and a fitness center.

New York City is considered a supply-constrained hotel market due to regulatory barriers such as the Safe Hotels Act, zoning amendments, and Local Law 18, which restrict short-term rentals. Despite these limitations, tourism demand is expected to continue rising, with more than 64 million visitors projected in 2025.