Recent financing news includes MCR closing on a $420-million refinancing of a 30-hotel portfolio and ACRES Capital Corp. originating a $74.75 million loan to fund the construction of the Westin Atlanta Gwinnett Hotel in Duluth, GA.
MCR closes on $420M refinancing of 30-hotel portfolio
MCR has closed on a $420-million refinancing of 30 hotels across the country. The financing was provided by balance sheet lenders Wells Fargo (who served as lead left arranger on the transaction), BMO Harris (joint lead arranger), Bank of America and Square Mile Capital at an interest rate of SOFR + 3.73%.
Spread across 17 states, the portfolio totals 3,792 rooms and is concentrated in high-growth markets in states such as Florida, Utah, Nevada, Colorado, Texas and South Carolina. The hotels have strong historic and in-place cash flow, and all have recently undergone capital improvements, positioning them well for future growth, according to the company.
The portfolio’s product type and geographic mix is diverse, consisting of Hilton- and Marriott-affiliated select-service and extended-stay hotels across eight different flags: Homewood Suites, Hampton Inn & Suites, Hilton Garden Inn, Home2 Suites, Residence Inn, Courtyard, SpringHill Suites and TownePlace Suites.
Locations range from leisure destinations (such as the Hilton Garden Inn Orlando at SeaWorld) to urban markets (Courtyard by Marriott Milwaukee Downtown) to university-driven markets (Hilton Garden Inn, Homewood Suites by Hilton and Home2 Suites by Hilton Champaign/Urbana at the University of Illinois).
Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor to MCR on the transaction, and Eastdil Secured served as financial advisor.
ACRES originates $74.75M loan for Westin in Duluth, GA
ACRES Capital Corp., a nationwide commercial real estate middle-market lender, has originated a $74.75 million loan to fund the construction of the Westin Atlanta Gwinnett Hotel in Duluth, GA.
“The property’s proximity to Atlanta, coupled with being the first 4-star hotel of its kind in this market, will meet the growing demand for business and leisure accommodations in the area,” said Mark Fogel, CEO/president, ACRES. “The Gas South District’s campus has created a distinctive and exciting atmosphere for hosting a variety of events, and we are confident that will help Westin further distinguish itself by leading the ‘path of progress’ north of Atlanta.”
The hotel will serve as the flagship hotel of the Gas South District’s campus. Significantly larger than the neighboring hotels, the Westin will feature 348 rooms, 17,607 sq. ft. of meeting space, a business center, a fitness room, dining and a rooftop bar.
“On behalf of Concord Hospitality and its investors, I am delighted to announce the closing of the construction loan for the Westin Atlanta Gwinnett with ACRES Capital,” said Mark Laport, president/CEO, Concord Hospitality, the property’s developer/operator. “The 348-room hotel and conference center will anchor and attach to the Gas South Convention Center and Arena. The hotel is ideally positioned in one of the fastest-growing counties in the greater Atlanta market. The various stakeholders recognize the tremendous future of the Westin Atlanta Gwinnett which will become one of the region’s most distinctive premium-branded hotel developments.”