ThirtyFourth Capital has arranged a $28.83 million acquisition loan for JMI Realty to finance the purchase of the 254-room Hilton Garden Inn Austin Downtown.
The financing was arranged by Beau Williams, managing partner, and Drew Gilligan, director, ThirtyFourth Capital through a regional bank. According to the company, the transaction closed within two months of engagement despite a compressed timeline tied to the structure of the sale.
Located near the Austin Convention Center, the hotel is positioned to serve business, leisure and group travelers. The property is slated to undergo a comprehensive renovation as the convention center moves forward with its planned $1.6 billion expansion, which is expected to double the facility’s size and increase its capacity for larger events.
Avion Hospitality will operate the property.
“We moved JMI to Austin nearly two decades ago because we believe it’s one of the most robust markets in the country,” said John Kratzer, CEO, JMI Realty. “Value creation through hands-on renovation, branding and asset management is core to JMIR’s past successes, and with a best-in-class operating partner in Avion, we’re excited to reposition this hotel for the future.”
Williams said the financing strategy was tailored to the sponsor’s long-term investment approach.
“When a sponsor finds the right deal at the right basis, the financing has to match their conviction,” he said. “Our team sourced multiple term sheets, identified a lender who understood the long-term strategy our sponsor was underwriting and closed with excellent economics and structure.”
