JLL Arranges $430M Refinancing for Fairmont Austin Hotel Tower

by John Nelson

AUSTIN, TEXAS — JLL has arranged a $430 million CMBS loan for the refinancing of Fairmont Austin, a 37-story luxury hotel tower located at 101 Red River St. in downtown Austin. The borrower, San Diego-based developer Manchester Financial Group, used the five-year, fixed-rate loan to replace a $300 million senior loan and $125 million of mezzanine debt, which Berkadia arranged in 2019.

Spanning 1.4 million square feet, Fairmont Austin features 1,048 guestrooms and suites, nearly 140,000 square feet of meeting space, a full-service spa, five dining options, an outdoor resort-style pool deck on the seventh floor and a pedestrian walkway connected to the Austin Convention Center. The hotel is currently the fifth-tallest building in Austin, according to JLL.

Manchester Financial Group delivered the Fairmont Austin in 2018. In addition to its direct connection to the convention center, the building is near Lady Bird Lake and the city’s premier neighborhoods including the Rainey Street District and East Austin.

Tim Wright, Aldon Cole and Olga Walsh of JLL’s capital markets debt advisory team arranged the interest-only loan through Goldman Sachs, which acted as lead manager and sole bookrunner in the transaction. Walsh says the marketing process for the refinancing was “competitive” due to the property’s location and strong sponsorship of Manchester Financial Group.

“This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100 percent ownership of the hotel,” says Papa Doug Manchester, former chairman and founder of Manchester Financial Group. “The funds will support the continued growth and enhancement of this premier property, ensuring it remains a top destination for visitors to Austin.”

Founded in 1970, Manchester Financial Group specializes in hotel and commercial real estate development projects. The company has developed more than $5 billion in assets worldwide over the past few decades.

— John Nelson

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