INDIANA AND MICHIGAN — KeyBank Real Estate Capital has provided a $69.9 million CMBS loan for the refinancing of an eight-property hotel portfolio in Indiana and Michigan. The 694-room portfolio consists of four extended-stay Homewood Suites by Hilton hotels and four limited-service Hilton Hampton Inn hotels located in various cities across Indiana and Michigan. Jake Proctor of KeyBank originated the 10-year loan, which features a 30-year amortization schedule. HRC Hotels was the borrower.
BURR RIDGE, ILL. — Aries Conlon Capital has arranged a $12.5 million bridge loan for the Crowne Plaza hotel near Chicago’s Midway International Airport in Burr Ridge, a southwest suburb of Chicago. The 123-room hotel, located at 300 S. Frontage Road and built in 1969, was previously a Quality Inn & Suites that had been fully renovated and reflagged recently as the IHG Crowne Plaza Hotels & Resorts brand. Managed by Chesapeake Hospitality, the property features meeting space, an indoor pool, restaurant, fitness center and business center. Rushi Shah of Aries Conlon arranged the 24-month, interest-only loan on behalf of the borrower, Vega Hospitality Group. Access Point Financial Inc. was the lender. Since the property’s cash flow was not yet at sufficient levels to cover the total debt, refinancing was almost impossible. Once the property is stabilized, the bridge loan will be refinanced to non-recourse permanent debt, according to Shah.
PHOENIX — AC Hotel by Marriott will be added to Arizona Center, a mixed-use entertainment destination in downtown Phoenix’s. The 200-room hotel will be built on a 49,190-square foot parcel on 5th Street between Fillmore and Van Buren streets. The 31-story tower is slated to begin construction in 2018. LaPour Partners is developing the hotel. Parallel Capital Partners own Arizona Center.
MILWAUKEE — Developer Janko Group and operator Janko Hospitality hosted a topping out ceremony for the Hyatt Place hotel under construction at The Brewery in Milwaukee on Thursday, Nov. 2. The 150-room, six-story hotel is slated to open in July 2018. Located at 800 W. Juneau Ave., the hotel is part of The Brewery neighborhood redevelopment project located on the site of the former Pabst Brewing Complex. The topping off ceremony took place on site in the hotel’s recently completed first floor. The Hyatt Place will feature a bar and lounge, 2,000 square feet of meeting space, fitness center and outdoor terrace.
SANDY SPRINGS, GA. — Crescent Real Estate LLC has acquired the Westin Atlanta Perimeter North, a 372-room hotel in Sandy Springs, roughly 15 miles north of downtown Atlanta. The Atlanta Business Chronicle reports a joint venture between Carey Watermark Investors and The Arden Group Inc. sold the asset for $84.9 million. The hotel is located adjacent to the 63-acre Concourse Corporate Center, a 2.2 million-square-foot, Class A office complex in Atlanta’s Central Perimeter office submarket that includes the “King and Queen” office towers. The Westin Atlanta Perimeter North features 20,000 square feet of meeting space, a business center, fitness studio, outdoor pool and the SAVOR bar and kitchen. The hotel was renovated in 2014 to include enhancements to rooms, public areas, meeting space and food and beverage facilities. HEI Hotels will manage the property on behalf of the new ownership.
PLANO, TEXAS — Hospitality REIT Ashford Hospitality Prime Inc. has sold Marriott Plano Legacy Town Center, a 404-room hotel located at 7121 Bishop Road in Plano, for $104 million. Built in 2001, the property features amenities such as a pool, fitness center, multiple dining options and 36,223 square feet of meeting space, and was sold at a cap rate of 7.7 percent. The buyer was not disclosed.
LAFAYETTE, IND. — DoubleTree by Hilton Lafayette East has opened in Lafayette, 63 miles northwest of Indianapolis. The 128-room hotel is located at 155 Progress Drive off I-65. Dora Hotel Co. LLC will own and operate the property in partnership with local developer Roy Meeks. Amenities include an indoor pool, business center, outdoor courtyard with fire pit, fitness center and 3,000 square feet of meeting space. Executive Chef Raul Roges heads the on-site Made Market restaurant and lounge as well as the banquet department.
DALLAS — Ashford Hospitality Trust (NYSE: AHT) has closed a $427 million refinancing of 17 properties within its hotel portfolio. The hotels in the portfolio are situated throughout the West, Midwest and South. The new loan is expected to result in annual interest savings of about $9.8 million. Properties included in the portfolio are — Courtyard Alpharetta, Georgia — Courtyard Bloomington, Indiana — Courtyard Crystal City, Virginia — Courtyard Foothill Ranch, California — Embassy Suites Austin, Texas — Embassy Suites Dallas, Texas — Embassy Suites Houston, Texas — Embassy Suites Las Vegas, Nevada — Embassy Suites Palm Beach, Florida — Hampton Inn Evansville, Indiana — Hilton Garden Inn Jacksonville, Florida — Hilton Nassau Bay, Texas — Hilton St. Petersburg, Florida — Residence Inn Evansville, Indiana — Residence Inn Falls Church, Virginia — Residence Inn San Diego, California and — Sheraton Indianapolis, Indiana The new mortgage loan has a two-year initial term and five, one-year extension options. The loan is interest-only features a floating interest rate of LIBOR plus 3 percent. The previous mortgage loan that was refinanced was the BAML 17 Pool loan with a final maturity date in December 2021. “The early execution of this refinancing provided us with …
CHICAGO — Chicago-based Aries Conlon Capital has arranged a $62.4 million non-recourse loan for the refinancing of a seven-hotel portfolio in seven states. The portfolio, owned by Inner Circle Investments, includes six Radisson hotels, which are located in Cromwell, Conn.; Billings, Mont.; Highpoint, N.C.; Albany, N.Y.; Appleton, Wis.; and Cheyenne, Wyo; as well as one independent, boutique hotel in St. Louis. Rushi Shah of Aries Conlon arranged the interest-only loan with an international investment bank. Instead of refinancing its assets as fee-simple properties, Inner Circle split ownership of the land parcels and the hotels into leased-fee and leasehold entities respectively, entered into 99-year leases with its hotels as tenants and then refinanced the land/leased-fee portions at a higher loan-to-value ratio and more attractive terms. Aries Conlon is now refinancing the corresponding leaseholds to effectively close the loop.
LAS CRUCES, N.M. — The 101-room Marriott SpringHill Suites in Las Cruces has sold to a California-based investor for an undisclosed sum. The hotel is located at 1611 Hickory Loop. The property is situated near New Mexico State University, Downtown Mall, Las Cruces Conventions Center, Memorial Medical Center and White Sands Missile Range. The buyer owns and operates a hotel portfolio throughout the Southwest under major brands including Marriott and Hilton. Mike Armstrong of HREC Investment Advisors represented the private seller in the transaction.
