AEW Secures $17M Financing for DC Hotel Purchase

WASHINGTON, DC-A $17.5-million acquisition financing deal has just closed for the Holiday Inn, Washington, DC. Operating on behalf of the AEW Partners Fund IV, AEW Capital Management is buying a joint venture interest in the 212-room hotel property, and relied on Prudential Mortgage Capital Co. to provide the funds. Located between the White House and the new Washington DC Convention Center, the 13-story Holiday Inn features an onsite restaurant, two meeting rooms, a business center, and an underground parking facility.

The acquisition financing consists of a three-year floating rate loan with a 30-year amortization schedule; two one-year extension options are in place, as well. Additionally the loan is locked-out to prepayment for the first three months, after which point it will be subject to a diminishing prepayment penalty until the 13th month.