New York-based CCRE led the financing on a $110 million loan for a 2,566-key, full-service hotel portfolio with seven properties in Florida, California, Virginia, Ohio and New Mexico, Mortgage Observer has learned.
HFF worked on behalf of the borrower—a joint-venture partnership between the $9 billion global alternative investment firm Värde Partners, the privately held investment group Waramaug Hospitality Management and the New York-based global hotel management company Interstate Hotels & Resorts—to secure the five-year, floating-rate loan from a group of lenders.
The proceeds will be used to refinance existing debt, according to the broker. The other lenders in the deal asked not to be named, a CCRE spokesperson said.
The portfolio’s seven properties include the 266-key Sheraton Tampa East in Tampa, Fla., the 382-key Sheraton Orlando North and the 718-key Radisson Orlando Celebration in Orlando, Fla., the 329-key Hilton Concord in Concord, Calif., the 295-key DoubleTree Williamsburg in Williamsburg, Va., the 300-key Crowne Plaza Columbus North in Columbus, Ohio, and the 276-key Sheraton Albuquerque Airport in Albuquerque, N.M.
Director Michael Weinberg led the HFF debt placement team representing the borrower along with Senior Managing Director Dan Peek, who heads up HFF’s hotel group, Senior Managing Director Trey Morsbach and Real Estate Analyst Preston Reid.
“The client purchased assets that were desperately in need of capital and were undermanaged,” Mr. Weinberg said in a prepared statement. “They spent more than $50 million on extensive renovations, which led to a sharp increase in performance due to the enhanced product offering and professional management. The enhanced performance and exceptional sponsorship were very well received by the debt capital markets.”