NATIONAL REPORT—Hotel Business is tracking financial transactions. Here’s a closer look:
The Hotel Minneapolis, Autograph Collection is Sold
Chesapeake Lodging Trust has closed on the sale of the 222-room The Hotel Minneapolis, Autograph Collection located in Minneapolis for a sale price of $46 million, or $207,000 per key. The trust used the net proceeds from the sale to repay outstanding borrowings under its revolving credit facility.
Redmont Hotel Birmingham Gets Financing
HREC Capital Markets Group, the dedicated mortgage brokerage team within HREC Investment Advisors, has arranged a $19-million senior loan for the cash-out refinancing of the 120-room Redmont Hotel Birmingham, Curio Collection by Hilton in Birmingham, AL. The 10-year fixed-rate non-recourse loan was provided by a New York-based mortgage REIT. Greg Porter, SVP, and Principal Mike Armstrong in HREC’s San Diego office exclusively represented the borrower, a private partnership.
Loans Secured for Three Best Western Plus Hotels
Sonnenblick-Eichner Company has arranged three separate, long-term fixed rate loans totaling $35.4 million for the refinancing of Best Western Plus Hotels located in Lake Tahoe, CA; Sacramento, CA; and San Diego.
Representing a long-time Southern California-based developer and operator of hospitality properties, Vista Investments LLC, Sonnenblick-Eichner Company secured $15 million in first mortgage debt on the 100-room Best Western Plus Truckee-Tahoe hotel and a separate non-cross-collateralized $7-million loan on the 105-room Best Western Plus Rancho Cordova in the Sacramento metro area. After acquiring the Tahoe property in 2013, the borrower reflagged the hotel as a Best Western Plus following a two-year multimillion-dollar renovation. The Best Western Rancho Cordova has undergone several renovations since being acquired in 2006.
Sonnenblick-Eichner Company also arranged $13.4 million leasehold first mortgage financing on tribal land to refinance the 173-room Best Western Plus Marina Gateway in National City, seven miles south of downtown San Diego.
Stonehill Closes on 15 Transactions
Stonehill has closed 15 transactions totaling more than $250 million through Q3 2017 and expects to close on an additional $100 million by year’s end. The transactions include 10 bridge loans, two permanents loans, two preferred equity investments and one mezzanine loan.
Sunstone Refinances Loan Secured by The Hilton San Diego Bayfront
Sunstone Hotel Investors Inc. has refinanced the existing $220-million mortgage loan secured by the Hilton San Diego Bayfront with a new $220-million mortgage loan. The loan has a three-year initial term and three one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR plus 1.05% with a 25 basis point increase during the final one-year extension period, if extended. The loan is expected to reduce the company’s consolidated annual cash interest expense by approximately $2.6 million. The loan replaces the existing loan that was scheduled to mature in August 2019 and had a floating interest rate of LIBOR plus 2.25%.