Who’s buying, selling and financing?

Transactions and financing abound as the industry continues its comeback from the pandemic, highlighted by a $1.7-billion deal in Boston.

Realty Income acquires Encore Boston Harbor for $1.7B
Realty Income Corporation has signed a definitive agreement to acquire the Encore Boston Harbor Resort and Casino for $1.7 billion under a long-term net lease agreement with Wynn Resorts Limited. The transaction is Realty Income’s first acquisition in the gaming industry.

The sale-leaseback transaction with Wynn Resorts is expected to be executed at a 5.9% initial cap rate, includes an initial lease term of 30 years with annual rent growth of 1.75% for the first 10 years and the greater of 1.75% or CPI (capped at 2.5%) over the remaining lease term. The lease also includes an additional 30-year option to renew upon expiration. Pending regulatory procedures, the company expects to close this transaction in the fourth quarter of 2022.

“This transaction demonstrates our ability to utilize our platform and scale to acquire prime real estate assets across a variety of industries in alignment with our investment criteria,” said Sumit Roy, president/CEO, Realty Income. “Our investment philosophy centers around generating favorable risk-adjusted returns by investing in strategically important properties with partners who are leaders in their respective industries. We are pleased to cultivate a new relationship with Wynn Resorts as we expand our universe of net lease investments.”

RobertDouglas advises Braemar on the $70.5M property refinancing
RobertDouglas advised Braemar Hotels & Resorts Inc. in successfully refinancing its existing CMBS loan for the 190-room Park Hyatt Beaver Creek Resort & Spa in Beaver Creek, CO, with a best-in-class bank lender.

The new, non-recourse loan totals $70.5 million and has a two-year initial term with three one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of SOFR + 2.86%.

Situated at the base of Beaver Creek Mountain, Park Hyatt Beaver Creek Resort & Spa offers ski-in/ski-out convenience, health and fitness amenities, a full-service spa and upscale dining experiences.

“The drive-to leisure market orientation attracted strong interest from institutional lenders to the Park Hyatt Beaver Creek Resort & Spa financing,” said Stephen O’Connor, principal/managing director, RobertDouglas. “We are encouraged by the increasingly competitive terms offered by capital providers seeking to lend to the hospitality sector, especially for irreplaceable, best-in-class assets with strong cash flow.”

Legendary Capital sponsors the acquisition of Courtyard in El Paso, TX
Legendary Capital has sponsored the acquisition of the 90-room Courtyard El Paso Airport in a $15.2-million transaction. The deal was materialized through a 721 UPREIT in which previous ownership of the property contributed their equity in exchange for common limited partnership units.

The property is located in the El Paso metropolitan statistical area (MSA), which has a population of 840,000. Home to University Medical Center, the only level-1 trauma center in the region, El Paso serves as a medical hub to western Texas and southern New Mexico. It is also home to the William Beaumont Army Medical Center, which provides medical care for active and retired military personnel within Arizona, New Mexico and Texas.

The Courtyard is located near the El Paso International Airport and the Fort Bliss military base. The airport saw 3.5 million passengers in 2019 and had seen a steady increase in passenger traffic year after year.

DelMonte purchases Saratoga, NY, property
Hotel management and development company DelMonte Hotel Group has acquired the Hampton Inn & Suites Saratoga Springs Downtown.

Located near Broadway in historic downtown Saratoga, the hotel is surrounded by the area’s premier shopping, entertainment, dining and nightlife attractions. Additionally, it is less than two miles from the Saratoga Racetrack, Skidmore College and The Saratoga Performing Arts Center.

The property features six stories of 123 guestrooms, many of which feature balconies, as well as on-site amenities including an indoor swimming pool, fitness center, gift shop, business center and guest laundry. It also has more than 2,649 sq. ft. of event space that breaks out into six private meeting rooms.

Originally constructed in 2008 and renovated in 2019, the hotel is integrated with a larger, mixed-use development that includes 45 apartment units, structured parking and retail space in an adjacent condominium complex.