JLL’s Capital Markets group has arranged a $430-million refinancing loan for Fairmont Austin, a 37-story luxury hotel in downtown Austin.
JLL Capital Markets represented Manchester Financial Group in securing the five-year, interest-only, fixed-rate SASB CMBS loan, with Goldman Sachs acting as a lead manager and sole bookrunner. The all-mortgage financing package was used to replace a $300-million senior loan and $125 million of mezzanine debt.
Fairmont Austin spans 1.4 million sq. ft. and is the city’s fifth-tallest building. Developed by Manchester Financial Group, the luxury hotel first opened in 2018 and features 1,048 guestrooms and suites, nearly 140,000 sq. ft. of meeting space, a full-service spa, five curated food and beverage outlets, an outdoor resort-style pool deck on the seventh floor and a pedestrian walkway providing direct access to the Austin Convention Center.
“This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100% ownership of the hotel,” said Papa Doug Manchester, chairman, Manchester Financial Group. “The funds will support the continued growth and enhancement of this premier property, ensuring it remains a top destination for visitors to Austin.”
The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole and Director Olga Walsh.
“With an influx of recently completed and ongoing construction projects in the immediate area, Fairmont Austin is well-positioned to benefit from the momentum in all directions and capitalize on its position as the epicenter of Austin’s explosive growth,” said Wright.
Walsh added, “Despite today’s challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group. This led to a competitive marketing process and, in the end, beneficial and highly tailored terms for our client.”
