Capstone Development

Capstone Development LLC is a privately held real estate development company headquartered in Washington, D.C. The company was established in February 2009 by Norman Jenkins, a former senior vice president of Marriott International whose career included hotel development, investment partnerships, minority-ownership initiatives, and public-private projects. Capstone was formed with funding from private-equity funds, individual investors, and Jenkins's own capital, and initially emphasized its relationships with banks capable of providing development financing. The company's central strategy has been to acquire, develop, and operate hotels, particularly in the Mid-Atlantic and southeastern United States. Capstone has described its preferred opportunities as specialty hotels, properties in markets with significant barriers to entry, and projects capable of becoming market leaders. Its development model has also included partnerships with municipalities, institutional investors, hotel companies, and other real estate developers. This approach was visible in the Washington Marriott Marquis, a large downtown Washington, D.C., hotel project financed and developed with the District of Columbia and Quadrangle Development Corporation. Capstone's hotel portfolio and project activity have included both select-service and full-service properties. The company developed a Courtyard by Marriott in Atlanta, Georgia, which opened in February 2011 and was subsequently agreed for sale to Summit Hotel Properties. It also completed the 3 Palms Oceanfront Resort in Myrtle Beach, South Carolina, in early 2011; the resort was described as the company's only full-service resort property at that time. The Washington Marriott Marquis opened on May 1, 2014 after a major construction and financing program. In addition to its development activities, Capstone operates through two identified subsidiaries. Capstone Management Services provides hotel management services, while Capstone Procurement supplies food-service and janitorial products to hotels. These subsidiaries give the company capabilities extending beyond project development into property operations and hotel procurement. Capstone has also pursued projects outside conventional hotel development. Its Heartsease at Shallotte project in North Carolina is an 83-unit craftsman-style cottage community designed as a luxury single-family rental development. The project was completed in 2023 at a reported development cost of $21.5 million. Earlier proposals included the possible redevelopment of Stevens Elementary School in Washington, D.C.'s West End, although that proposal did not reach the finalist stage. The available public material documents Capstone's formation, hotel portfolio, affiliated operating businesses, and selected developments, but provides limited information about its current executive team, total assets, current ownership, or complete active portfolio. It is therefore best characterized as a privately held American developer with a historically strong concentration in hospitality and experience in complex public-private real estate projects.

Capstone Development was founded in February 2009 by Norman Jenkins in Washington, D.C. Before starting the company, Jenkins spent 16 years at Marriott International and rose to senior vice president. His Marriott work included efforts to broaden minority participation in hotel ownership through the company's Diversity Ownership Initiative, which was launched in 2005. He also helped oversee a cooperative venture between Marriott and RLJ Hotels that acquired 90 hotels and made RLJ one of Marriott's major investment partners. Jenkins was additionally associated with Marriott's decision to develop a Residence Inn in downtown Silver Spring, Maryland, a project credited with contributing to the revitalization of the area's business district. Jenkins announced his departure from Marriott in late November 2008 and left the company on January 1, 2009. Soon afterward, he created Capstone with money from private-equity funds, wealthy investors, and his own resources. At formation, the company stated that it had relationships with banks prepared to provide development loans. It reported five projects already in development and another four in planning, including projects involving public-private financing and development structures. Capstone's initial business plan centered on hotel acquisition and construction in the Mid-Atlantic region. Management emphasized specialty hotels, markets with high barriers to new supply, and properties that could achieve market-leading positions. The company also sought to apply Jenkins's experience with public-sector partnerships to projects requiring municipal participation, tax-supported financing, or cooperation with established hotel companies. The company's early portfolio included the 3 Palms Oceanfront Resort in Myrtle Beach, South Carolina, completed in early 2011, and a Courtyard by Marriott in Atlanta, Georgia, which opened in February of that year. The Atlanta property was later agreed for sale to Summit Hotel Properties. Capstone's most prominent early undertaking was the Washington Marriott Marquis, developed with the District of Columbia and Quadrangle Development Corporation. The project represented a large downtown convention-oriented hotel investment and opened on May 1, 2014. Capstone continued to pursue additional hotel developments. In September 2011, it announced an agreement with Marriott International to develop a Residence Inn and a Courtyard by Marriott on Marriott-owned land immediately north of the Washington Marriott Marquis. The proposed properties were planned to contain 500 rooms in total and to require $172 million of investment. The development partners sought $35 million in tax-increment financing from the District of Columbia, although city officials indicated that approval appeared unlikely at that stage. The company also explored adaptive reuse and non-hotel real estate. In 2009, Capstone submitted a proposal to redevelop the historic Stevens Elementary School in Washington's West End, but the proposal was not included on the shortlist of acceptable submissions. In North Carolina, the company developed Heartsease at Shallotte, an 83-unit community of craftsman-style cottages intended for luxury single-family rental use. That $21.5 million project was completed in 2023. Alongside property development, Capstone established operating subsidiaries. Capstone Management Services provides hotel management, while Capstone Procurement supplies food-service and janitorial materials to hotels. These businesses support an integrated model in which Capstone can participate in development, operations, and property-level purchasing. Public sources provide only limited information about the company's current portfolio, leadership beyond its founder, ownership structure, and financial performance.

1. 2023Heartsease at Shallotte completed

   Capstone completed an 83-unit luxury single-family rental community in Shallotte, North Carolina.

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2. 2014Washington Marriott Marquis opened

   The major Washington, D.C., hotel project opened on May 1 after development with the District of Columbia and Quadrangle Development Corporation.

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3. 20113 Palms Oceanfront Resort completed

   Capstone completed its Myrtle Beach resort, described at the time as its only full-service resort property.

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4. 2011Courtyard by Marriott Atlanta opened

   The Atlanta hotel opened in February and was later contracted for sale to Summit Hotel Properties.

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5. 2009Capstone Development founded

   Norman Jenkins formed Capstone Development LLC in Washington, D.C., using capital from private-equity funds, individual investors, and himself.

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6. 2005Marriott launched a minority hotel-ownership initiative

   Before founding Capstone, Norman Jenkins helped Marriott International establish an initiative intended to expand minority participation in hotel franchise ownership.

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A privately held, hospitality-oriented real estate developer emphasizing strategically located hotels, high-barrier-to-entry markets, public-private partnerships, and integrated hotel management and procurement capabilities.

• Washington Marriott MarquisConvention and full-service hotel2014

  A large downtown Washington, D.C., Marriott hotel developed by Capstone with the District of Columbia and Quadrangle Development Corporation. The project was conceived as a major public-private hospitality development and opened on May 1, 2014.

• 3 Palms Oceanfront ResortFull-service resort2011

  An oceanfront resort in Myrtle Beach, South Carolina, completed in early 2011. It was identified in company descriptions as Capstone's only full-service resort property at that point in its development history.

• Courtyard by Marriott AtlantaSelect-service hotel2011

  A Courtyard by Marriott hotel in Atlanta, Georgia, opened in February 2011. Capstone agreed to sell the property to Summit Hotel Properties later that year.

• Heartsease at ShallotteLuxury single-family rental community2023

  An 83-unit craftsman-style cottage community in Shallotte, North Carolina. The project was developed as a luxury single-family rental offering and completed in 2023.

• Capstone Management ServicesHotel management services

  A Capstone subsidiary providing hotel management services for hospitality properties. Public reference material does not specify its complete property roster or current operating scale.

• Capstone ProcurementHotel procurement

  A Capstone subsidiary supplying food-service and janitorial products to hotels. Available sources do not provide a detailed account of its current customers or geographic coverage.

• 2011Agreed sale of Courtyard by Marriott AtlantaM&A

  After opening the Atlanta Courtyard hotel in February 2011, Capstone pursued a sale of the property to Summit Hotel Properties.

  What changed. Capstone agreed in November 2011 to sell the hotel for $28.65 million.

  Aftermath. The transaction transferred the property to Summit Hotel Properties; the available reference does not describe further financial or strategic consequences.

  Agreed sale price. $28.65 million (November 2011)

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• 2011Proposed paired Residence Inn and Courtyard development in Washington, D.C.Strategy

  Capstone and Marriott planned two hotels on Marriott-owned land north of the Washington Marriott Marquis, using a coordinated development structure.

  What changed. The partners proposed a 500-room, $172 million development and sought $35 million in tax-increment financing from the District of Columbia.

  Aftermath. City officials indicated that the requested public financing was unlikely to be approved at that time. The ultimate outcome of the proposal is not established by the available material.

  Proposed development cost. $172 million (September 2011 proposal)

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• 2023Heartsease at Shallotte residential development completed

  Capstone completed an 83-unit luxury single-family rental community in Shallotte, North Carolina.

  Product launch
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• 2014Washington Marriott Marquis opened

  The Washington Marriott Marquis, a major public-private hotel development in downtown Washington, D.C., opened on May 1, 2014.

  Product launch
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• 2011Capstone completed the 3 Palms Oceanfront Resort

  The Myrtle Beach, South Carolina, resort was completed in early 2011 and was identified as Capstone's only full-service resort property at the time.

  Product launch
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• 2011Courtyard by Marriott Atlanta opened

  Capstone's Courtyard by Marriott property in Atlanta opened in February 2011.

  Product launch
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• 2011Capstone agreed to sell Courtyard by Marriott Atlanta

  Capstone agreed to sell the Atlanta hotel to Summit Hotel Properties for $28.65 million in November 2011.

  M&A
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• 2009Capstone Development formed by former Marriott executive Norman Jenkins

  Norman Jenkins established Capstone Development after leaving Marriott International, launching the company with private-equity, investor, and personal capital.

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1. Capstone Development