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12/07/18
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Landmark Companies has obtained a $71 mil, fixed-rate loan for the 375-key Embassy Suites by Hilton Anaheim - South hotel. The hotel, at 11767 Harbor Blvd in Garden Grove, is located two blocks from Disneyland Resort.
Marc Sallette, Olga Lepow, Cara Leonard and Charlie Ryan with CBRE Hotel’s Debt & Structured Finance team facilitated the 10 year, fixed-rate interest-only loan to refinance the existing debt. The debt is split into a $56 mil senior mortgage to be securitized by Deutsche Bank, while Artemis Real Estate Partners provided the $15 mil junior mezzanine loan to be held on book.
Landmark developed the property in 2001, and the majority of the new mortgage is extinguishing existing loans. The owner is also undertaking a five-year, $16 mil renovation of the hotel in conjunction with the financing.
“We anticipated strong interest in this financing request due to both the quality of the brand and its proximity to several of SoCal’s iconic demand generators as well as the thriving hospitality market,” said Sallette.
Based on an upward revised outlook for the U.S. economy, U.S. hotels will likely see the 10th consecutive year of growth in 2019, according to the latest CBRE Hotels Americas Research. U.S. hotel occupancy is expected to rise to 66.2% next year, a fifth straight record level, according to the December 2018 edition of Hotel Horizons®. The growth in occupancy is primarily the result of a projected 2.1% increase in demand, more than enough to offset an estimated net increase in supply of 1.9% for the year.
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