Square Mile provides $40M Mezz Loan for New Orleans Hotel Refi
Cathy Cunningham May 24, 2016, 4 p.m.
Square Mile Capital Management has originated a $40 million mezzanine loan with a five-year term for the refinancing of the Hyatt Regency Hotel in New Orleans, Commercial Observer can first report.
The property was acquired by a partnership between funds managed by Ares Management and local real estate investor Chris Robertson for $32 million in 2007, after being closed in 2005 due to significant storm damage from Hurricane Katrina. It was completely reconstructed, and reopened in 2011.
The 1,193-room hotel is located at 601 Loyola Avenue, five blocks from the French Quarter and adjacent to the Mercedes-Benz Superdome. The property includes eight food and beverage outlets, a 25,000 square foot leisure pool deck, fitness center and spa.
“New Orleans has experienced a renaissance post-Katrina, with continued diversification as a center for healthcare, technology energy, and tourism,” said Nolan Hecht, a managing director at Square Mile, in prepared remarks. “The Hyatt Regency New Orleans has been successfully repositioned as the leading group hotel in the local market and one of the predominant meeting houses in the country.”