Rockbridge says it put up $27.8 million of equity with the Davidson Hotel Co. and sourced a first mortgage loan of $82 million first mortgage loan from CDC Mortgage Capital of New York City to acquire the properties, each of which are located in a different state. The loan includes about $10 million for scheduled capital improvements at the properties, according to CDC.
The individual properties include the 280-room Marriott Renaissance in Agoura Hills, CA; the 273-room Hilton in Eugene, OR; the 347-room Hilton in Kansas City, MO; and the 386-room Hilton in San Antonio, TX.
CDC Mortgage Capital is the US real estate financing unit of CDC IXIS of Paris. The loan to Rockbridge and Davidson was originated by Jeff Williams and Scott Zucker. The two tell GlobeSt.com that ìin all likelihood the loan will be securitized and sold off in the first half of next year. As well, they say the loan is structured to allow the sale or refinancing of the portfolio when industry-wide higher performance levels are achieved.
The Davidson Hotel Co. is a vertically integrated hotel development and management company founded in 1974 and headed by Chick Hill. Davidson currently operates 24 properties (6,200 rooms) throughout the US under the brand names Marriott, Hilton, Embassy Suites, Sheraton, and Doubletree.
RockBridge Capital provides capital to the real estate industry through the RockBridge Real Estate Funds. Since 1993, RockBridge principals have formed and managed six closed-end real estate funds. The company makes bridge, first mortgage, mezzanine debt, and preferred equity investments, primarily in the hotel (80%) and office (20%) sectors.
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