ARLINGTON, VA—The JBG Cos. has secured a $55-million loan to refinance its Hilton Crystal City hotel.
The mortgage financing deal was announced by the New York City office of Mesa West Capital, which originated the transaction. The non-recourse, floating-rate interest-only loan included an initial term of three years with extension options.
JBG acquired the full-service hotel property, which is next to National Airport, in 2012. The hotel underwent a major renovation program in 2013.
Improvements included upgrades to the 393 guest rooms, lobby, and meeting space, as well as the addition of a new executive lounge and six new studio suites. Following the renovation, both occupancy and Average Daily Rate have improved at the property, according to Mesa West Capital assistant vice president Daniel Tanner who originated the financing.
"JBG and manager Crescent Hotels and Resorts have taken the necessary steps to capture an increasing share of an improving hospitality market in the greater DC metro," Tanner says in a prepared statement.
The Hilton Crystal City transaction is Mesa West's second financing on a JBG-owned hotel and its fourth in the DC metro this year. In March, the Los Angeles-based balance sheet lender provided JBG with $27 million in first mortgage debt to refinance the 191-room Westin Reston Heights in Reston, VA.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
