- APF, TMGOC co-originated $120 million for Kailas.
- The mooney will recapitalize a hotel conversion.
- Ackman-Ziff brokered the transaction.
ACCESS POINT FINANCIAL and TMGOC Ventures co-originated a $120 million bridge loan and preferred equity investment for Kailas Cos. The financing will recapitalize the conversion of an office building into a dual-branded hotel in downtown New Orleans.
The project includes the 250-key Fairmont New Orleans and the 216-key Element by Marriott New Orleans Downtown, the companies said in a statement. It also includes Emeril’s Delmonico restaurant and 150,000 square feet of office space.
The property is in New Orleans’ central business district, near Canal Street, French Quarter and Caesars Superdome, the statement said. It is near Tulane University, LSU Health Sciences Center, Caesars Superdome and the Biomedical District.
Russ Schildcrout of Ackman-Ziff brokered the transaction.
“With an established track record of 36 years, Kailas owns and operates a portfolio of office, multifamily and retail properties within and around The Crescent City, accounting for more than two million square feet of building space,” said Dana Tsakanikas, APF chief investment officer. “Access Point Financial looks forward to the project’s success and maintains its desire to work with best-in-class partners like Kailas Cos.”
Built in 1970 as a 31-story office building, the Skidmore, Owings & Merrill-designed tower was acquired by Kailas in 2014 for conversion into hotel space. Construction on the conversion began in January 2024.
Kailas, a Louisiana-based real estate development and investment firm founded by Mohan Kailas in 1990, focuses on commercial, hospitality and residential properties across Louisiana. The company, led by Chief Development Officer Naveen Kailas, manages more than two million square feet of space, including office, residential, retail and hotel properties, according to its website.
TMGOC, a real estate and development private equity firm based in Boca Raton, Florida, is led by founders and managing partners Sunju Patel and Glenn Alba.
Tsakanikas said Patel and Alba exemplify an effective working relationship.
“Between our two firms’ existing, long-standing relationship and substantial hospitality investment, ownership, operational and asset management experience, we are a natural fit together,” she said.
In May, TMGOC acquired the 455-key Bethesda North Marriott Hotel in Bethesda, Maryland, with an institutional investor.
