COLLEGE PARK, MD. — Capital One has served as sole lead arranger, sole bookrunner and administrative agent for an $80 million syndicated loan to finance the construction of a 297-room, four-star hotel located near the entrance to the University of Maryland in College Park.
The borrower, Southern Management Corp., is a privately owned residential property management company in the Mid-Atlantic region.
The 10-story, 365,681 square-foot hotel, which is scheduled to open in 2017, will include 43,832 square feet of meeting space, an indoor/outdoor pool, a fitness center, concierge service and executive-level amenities. The property will also include a nine-story parking garage above 43,212 square feet of ground-floor retail space, much of it devoted to dining.
Additional amenities planned for the hotel include a steak-and-seafood restaurant, two ballrooms with space for up to 1,000 people, a high-end spa and a Bagels ‘n Grinds coffee shop on the first floor.
“Capital One’s commitment to learning the details of our business ensured that the transaction met our needs and proceeded smoothly to closing,” says David Hillman, CEO of Vienna, Va.-based Southern Management Corp.
Sadhvi Subramanian, senior vice president and market manager, and Brian Gormley, senior vice president, in Capital One Commercial Real Estate’s Washington, D.C. office, originated the transaction. The three-year, interest-only loan has the possibility of two one-year extensions.
Southern Management is one of the largest privately owned residential property-management companies in the Mid-Atlantic area, where it owns and manages more than 25,000 apartments.
McLean, Va.-based Capital One Financial Corp. is a financial holding company whose subsidiaries, which include Capital One NA and Capital One Bank (USA) NA, had $208.8 billion in deposits and $310.5 billion in total assets as of June 30.
— Scott Reid