NATIONAL REPORT—Hersha Hospitality Trust, Mag Mile Capital and Trez Capital have all completed hotel transactions. Here’s a look at the recent deals:
Hersha Hospitality Trust Enters into Sales Contracts
Hersha Hospitality Trust has entered into binding sales contracts for two consolidated hotels and two unconsolidated joint venture assets for a total asset value of $144 million which will result in $97 million of debt reduction. These agreements include the Blue Moon Hotel on Miami Beach for $30 million, the Duane Street Hotel in New York City for $20 million, and the exit of the 50% ownership in two South Boston hotels: Courtyard South Boston and Holiday Inn Express South Boston for $94 million.
The transactions are anticipated to close by the end of the second quarter. The transactions remain subject to customary closing conditions and no assurance can be given that these transactions will close within the expected time frame, or at all.
Mag Mile Capital Completes Loan for Tempe, AZ Property
Mag Mile Capital has completed a $10.1-million, interest-only, floating rate loan for the refinance and conversion of a 103-room hotel in Tempe, AZ. Borrower Kuber Hotel Group sought the loan to both refinance and convert an existing Best Western hotel to a Holiday Inn Express. The 36-month loan, with an option to extend, included a $2-million conversion and renovation fund. Mag Mile worked closely with the borrower and lender to minimize the impact of seasonal cash fluctuations to close and with lender to reduce FF&E reserve requirements to 1% during the conversion period.
Investor Acquires Downtown Atlanta Hotel with Loan from Trez Capital
Trez Capital funded a $25.5 million first mortgage for a local investment company to acquire and renovate the 173-room Holiday Inn Express in downtown Atlanta. The property was originally built in 1922 and last renovated in 2012. The borrowers are HIE Development LLC and CG Management LLC. Brett D. Forman originated the loan on behalf of Trez Capital. The transaction closed Feb. 25. The borrower will use loan proceeds to renovate all rooms and build out a 3,240-sq.-ft. rooftop meeting room with outdoor patio to attract more corporate clients.