Berkadia’s Hotels & Hospitality Group announced that it closed $646 million in financing through six separate transactions related to properties across 5 states in the 7 days from August 29 to September 5.
“As evidenced by the past week, we’re seeing tremendous second half of the year momentum as the availability of financing fuels an appetite for transactions,” said Hotels & Hospitality Group Head Andrew Coleman. “The travel industry continues to grow, and the hospitality market remains strong. A lot of assets coming out of construction are operating ahead of schedule and able to finance out of construction loans earlier. This move into more stabilized financing means more work for us. We expect this momentum to continue into 2020 and we’re excited.”
The week represents the greatest activity volume and the largest single deal on record for a team that has been consistently demonstrating 100 percent year-over-year growth.
“There’s no better illustration of the depth and breadth of Berkadia’s experience and capability in the hotels arena than the past week,” said Director of Operations Matthew Dower. “These deals run the gamut from large-scale luxury to middle-market select-service in gateway, secondary and tertiary markets alike. We recognize that each client and transaction have a unique range of needs and so we take a truly integrated approach in tailoring the right financing solution.”
The pillars of the deal activity were financing arranged for the new Fairmont Austin in Texas and a private portfolio of urban hotels, which accounted for nearly 90 percent of the total transaction volume:
- Senior Managing Director Andy Coleman secured $425 million in floating-rate financing for the Fairmont Austin through Bank of America Merrill Lynch on behalf of the Manchester Financial Group. The two-year, interest only, adjustable rate loan closed on September 5.
- Director Matt Raptosh arranged $150.5 million in financing for a private portfolio. The three-year, adjustable rate loan closed on August 30.
Transactions in Utah, Colorado and North Carolina rounded out the banner week:
Director Adrienne Kautzman arranged a combined $28 million in financing for two properties in Moab, UT, through Bank of America Merrill Lynch on behalf of Dynamic City Capital. For the Fairfield Inn and Suites Moab, Berkadia secured $12.5 million in ten year, fixed-rate financing. For Springhill Suits Moab, Berkadia secured $15.5 million in ten-year, fixed-rate financing. The loans closed on August 29.
Kautzman also arranged $10.75 million in financing for the Hampton Inn Wilmington North Carolina on behalf of Vision Hospitality Group. Berkadia secured the ten-year, fixed-rate loan through Wells Fargo. The loan closed on August 29.
Director Mauricio Rodriguez arranged $32 million in financing for the Residence Inn Boulder. The ten-year, fixed-rate loan was secured through Nationwide Life Insurance Company. The loan closed on August 29.
Berkadia’s Hotels & Hospitality Group combines best-in-industry innovation, knowledge and experience with the most comprehensive suite of products and services, backed by relentless customer service and support to empower clients to capitalize on the right opportunities at the greatest value. The group serves clients across the country, offering a full set of advisory, investment sales, underwriting and loan origination services and products including Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.
To learn more about Berkadia, please visit www.berkadia.com.
