Landmark Companies has acquired a $71 million fixed-rate loan for the 375-key Embassy Suites by Hilton Anaheim–South hotel near Disneyland® Resort, according to a release from a representative of CBRE. The statement says CBRE Hotel’s Debt & Structured Finance team Marc Sallette and Olga Lepow in Houston and Cara Leonard and Charlie Ryan in Los Angeles jointly facilitated the 10-year, fixed-rate interest-only loan to refinance the existing debt.
According to the source, the debt is split into a $56 million senior mortgage to be securitized by Deutsche Bank, while Artemis Real Estate Partners provided the $15 million 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 release says. The owner is also undertaking a five-year, $16 million renovation of the hotel in conjunction with the financing.
Sallette is quoted in the release as saying, “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.” He adds that the team “facilitated a bespoke loan solution with several borrower-specific requirements not typically provided by the market.”
Large financing deals for Disneyland-proximate hotels have been in the news lately. As SoCal Real Estate reported last week, BPM Real Estate Group obtained a $115 million non-recourse senior construction loan for the ground-up development of a 12-story, 326-key, four-star Radisson Blu hotel in Anaheim, California, according to a release from a representative of George Smith Partners. The release said GSP secured the loan for the hotel build, located at 1601 South Anaheim Boulevard and situated within the Disneyland/Anaheim Convention Center submarket.