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ALEXANDRIA, VA-A financing deal valued at $19.1 million has closed for the Alexandria Hotel Pentagon South, leaving the borrower with the funds to acquire the 191-room lodging facility. GMAC Commercial Mortgage Corp. provided the financing for Alexandria CY Hotel, which purchased the hotel from New Alexandria Hotel LP for nearly $12.8 million.

The borrower plans to apply the remaining funds toward a property improvement plan that will get under way at the end of the year, with a targeted completion date of mid-2006. "This unique transaction provided the borrower with capital to both purchase the Alexandria Hotel Pentagon South, which was formerly a Sheraton Hotel, and to convert it to a Courtyard by Marriott," says GMACCM vice president Chris Clark.

Developed in 1976, Alexandria Pentagon South occupies a nearly three-acre parcel at 4641 Kenmore Ave., right off Interstate 395. According to city records, the property--which also features a 150-seat restaurant, a fitness facility and more than 6,000 sf of meeting space--has a current assessed value of $12.5 million.