NATIONAL REPORT—Mag Mile Capital, George Smith Partners and RLJ Lodging Trust are making deals across the U.S. From project financings to sales in the South, here’s some of the recent industry transactions:
Mag Mile Capital Completes Two Loans in Florida
Mag Mile Capital’s SVP Francisco Nacorda has completed $15.4 million in two non-recourse, CMBS loans for hotels located in Orlando, FL, and will be opening the firm’s Orlando office to accommodate the growing demand in the Southeast region.
In the first closing, Mag Mile Capital completed an $8.1-million loan for a 218-room hotel located at 6323 International Dr. The 10-year, non-recourse loan features a 25-year amortization and 65% loan-to-value ratio. The loan enabled the borrower to pay off an existing SBA loan as well as take cash out to put toward portfolio growth. Mag Mile Capital also completed a $7.3-million non-recourse, CMBS loan for a property located on Canada Ave. next to I-Dr. The 130-room hotel is an independent property for which the borrower was seeking cash-out and maximum leverage. The loan features a 30-year amortization rate and a loan-to-value ratio of 67%.
Block 216 Project in Portland, OR, Secures Construction Loan
George Smith Partners has secured a $460-million senior construction loan on behalf of BPM Real Estate Group (BPM) for Block 216, a landmark 1.1 million-sq.-ft. ground-up development. The 35-story, luxury high-rise will be anchored by a Ritz-Carlton. An affiliate of Mosaic Real Estate Investors funded the four-year loan. George Smith Partners’ Malcolm Davies, principal/managing director, and Zachary Streit, SVP, along with other members from the Davies Group in the Los Angeles office sourced the financing on behalf of BPM Founder Walter Bowen.
The Block 216 project will encompass a full city block, located at the intersection of the Central Business and Pearl districts in downtown Portland. In addition to the 251-room Ritz-Carlton hotel, the Block 216 tower also will include 138 branded Ritz-Carlton Residences, 140,000 sq. ft. of Class A office space and 7,800 sq. ft. of ground-floor retail, which will open up to a pedestrian “festival street.” Portland-based BPM will begin construction of Block 216 this summer and host a ceremonial groundbreaking on July 12. Construction is expected to be completed in 2023.
RLJ Lodging Trust Sells Kingston Plantation for $156 Million
RLJ Lodging Trust has sold two hotels located in Myrtle Beach, SC, consisting of the 385-room Hilton Myrtle Beach Resort and 255-room Embassy Suites by Hilton Myrtle Beach Oceanfront Resort for $156 million, or approximately $244,000 per key. Based on the trailing 12 months ended May 2019, the sales price represents a 12.9x Hotel EBITDA multiple and 6.7% capitalization rate, inclusive of $44.5 million in planned capital expenditures. RLJ estimates the disposition of Kingston Plantation will have the following effect on its full year 2019 outlook: Pro forma Consolidated Hotel EBITDA will be reduced by approximately $15.5 million and Adjusted EBITDA will be reduced by approximately $8.8 million.
