North Austin Hotel Sells for $17.5M
- Nov 25, 2015
Berkadia recently originated $17.5 million in financing for the 189-key Holiday Inn Austin Midtown hotel. Senior Managing Director Stuart Wernick and Senior Director Eli Gershenson of the firm’s Dallas office secured the financing with a senior and mezzanine structure.
The recently renovated hotel was acquired by a partnership between Alliance Development and Compass Lodging Advisors. The newly formed entity used a five-year, fixed-rate financing. Berkadia’s bidding process finalized with the selection of two lenders to help secure the necessary loan proceeds required by the borrower. This was accomplished within 60 days of the submission of the borrower’s application. Combined, the two loans provided the desired elevated loan-to-cost ratio with an attractive interest rate.
Holiday Inn Austin Midtown is a nine-story hotel located at 6000 Middle Fiskville Road. The property features 15,000 square feet of meeting and conference room space, as well as an array of amenities including a pool, fitness center, business center, and cocktail bar.
“The hotel is located adjacent to what used to be Highland Mall, which had been in decline over the past several years. However, the mall was recently acquired by Austin Community College and now is being redeveloped into its flagship campus which will have an enrollment of over 7,500 students this upcoming year,” Wernick said in a prepared statement. “The economic generator of the school, as well as the greater Highland Mall redevelopment, was an extremely attractive factor for the borrower’s acquisition of the property.”
Image courtesy of IHG