Blackstone Gets $335M Mortgage From Cornerstone for National Hotel Buy
By Danielle Balbi April 14, 2016 2:00 pm
reprints
Cornerstone Real Estate Advisers originated a $335 million mortgage to fund Blackstone Group’s acquisition of four Club Quarters hotels across the U.S., the lender announced in a press release.
Jamie Henderson, the chief investment officer of alternative investments at Cornerstone, told Commercial Observer through a spokeswoman that the financing carries a floating-rate with an initial three-year term and two one-year extension options.
“These hotels are in impeccable cities, which are ranked among the largest and strongest lodging markets in the U.S.,” Mr. Henderson said in prepared remarks. “We are pleased to provide Blackstone with this important strategic financing and to further expand our relationship.”
The 1,228-key Club Quarters portfolio is comprised of the 346-room hotel in San Francisco at 424 Clay Street, the 178-room hotel in Boston at 161 Devonshire Street, the 429-room hotel in Chicago, Central Loop at 111 West Adams Street and the 275-room hotel in Philadelphia at 1628 Chestnut Street.
Blackstone has been extremely active in the hotel space; it will soon be selling a 16-hotel portfolio to Anbang Insurance Group for $6.5 billion, after scooping it up from Strategic Hotels & Resorts for $6 billion in December 2015, as has been widely reported.
A spokeswoman for Blackstone declined to comment.
