NATIONAL REPORT—Pebblebrook, ERG, Crystal Investment Property, JLL, Mission Capital and Mag Mile have all been involved in transactions. Here’s more on recent sales and financing:
Pebblebrook Closes Sale of Topaz Hotel in Washington, DC
Pebblebrook Hotel Trust has closed on the sale of the 99-room Topaz Hotel in Washington, DC, for $33.1 million to a third party. The sale price of $33.1 million reflects a 19.5x EBITDA multiple and a 4.4% net operating income capitalization rate based on the hotel’s operating performance for 2018. Based on the trailing 12-month period ended Sept. 30, the contracted sales price reflects a 17.9x EBITDA multiple and a 4.9% net operating income capitalization rate. Proceeds from the sale of Topaz Hotel will be utilized for general business purposes, which may include reducing the company’s outstanding debt.
ERG Enterprises Acquires Hyatt Regency New Orleans
ERG Enterprises, a New Orleans-based investment company, has partnered in acquiring the Hyatt Regency New Orleans, a 1,193-room hotel in downtown New Orleans. The sale represents the first time the Hyatt Regency will fall under local majority ownership. For the purchase, ERG joins the local ownership team of Gayle Benson and her investment company GMB Properties and The Berger Co., owned by local developer Darryl Berger. Fulcrum Hospitality, located in New Jersey, is also an investor in the property. ERG will assume minority ownership in the hotel, which will continue to be managed by Hyatt Hotels. The ownership team plans to invest $20 million to make enhancements over the next few years.
Crystal Investment Property Arranges Sale of Hotel in Pendleton, OR
Crystal Investment Property LLC, a member of Hotel Brokers International, has sold The Marigold Hotel in Pendleton, OR. CIP, a licensed Oregon brokerage, represented the buyer and seller in the sale. Joseph P. Kennedy, president of CIP, worked closely with the seller and buyer, as well as the parties’ other professionals, to negotiate a mutually acceptable sale. The final sale price is confidential. The Marigold Hotel is a 47-key, two-story property updated in 2018. The property is close to downtown restaurants and events, along with highway access and a designated parking garage.
JLL Arranges Construction Financing for Canopy by Hilton Boston Downtown
JLL has arranged $75 million in construction financing for the development of Canopy by Hilton Boston Downtown, a 212-room boutique hotel to be built across from the Rose Kennedy Greenway in Downtown Boston. JLL worked on behalf of the developer, a partnership between Olshan Properties, CV Properties and Harbinger Development, to place the construction loan with Citizens Bank. The six-story Canopy by Hilton Boston Downtown will have a fitness center, 1,600 sq. ft. of meeting space, three street-level restaurant/retail spaces totaling 12,711 sq. ft., and is close to Faneuil Hall, the Financial District, Back Bay and more.
Mission Capital Secures Financing for Fairfield Inn & Suites in Pittsburgh
Mission Capital Advisors has arranged $12.35 million in financing for the acquisition of the Fairfield Inn & Suites by Marriott in Pittsburgh, a 98-key, eight-story, select-service new-build hotel in the Central Business District. Beau Williams, Steven Buchwald and Daniel Azizi of Mission Capital worked with real estate investment, management and development firms Milestone Companies and Woodmont Lodging to secure the loan. The property is close to Pittsburgh’s First Ave. Light Rail Station and the David L. Lawrence Convention Center. The property opened in October and will be managed by Milestone Hospitality Management.
Mag Mile Closes Loan for Fairfield Inn & Suites in Fredericksburg, TX
Mag Mile Capital Principal/CEO Rushi Shah and VP Prabhat Jayara have closed a $5.5-million dollar non-recourse, 10-year fixed rate CMBS loan for the Fairfield Inn & Suites by Marriott in Fredericksburg, TX. The three-story Fairfield Inn has 78 rooms and was an acquisition loan for the borrower featuring an interest in the low 4% range and 30-year amortization.