Search
 

Innkeepers Completes $215M Hotel Deal

PALM BEACH, FL-The transaction with RLJ Urban Lodging Fund, LP centers around four hotels comprising 931 rooms in Southern California.

By Melissa Kress | Updated on October 05, 2006

PALM BEACH, FL-Four hotels in Southern California are officially part of locally based Innkeepers USA Trust’s portfolio today with the closing of its $215-million deal with RLJ Urban Lodging Fund, LP. The deal first made news in July, as GlobeSt.com previously reported.

The four hotels involved in the transaction are the Residence Inn San Diego (Mission Valley) with 192 rooms, Residence Inn Anaheim (Resort Area) with 200 rooms, Hilton Suites Anaheim with 230 rooms and Hilton Ontario with 309 rooms. The Bethesda, MD-based seller is an affiliate of RLJ Development, LLC.

The locally based REIT funded the $213,000-per-room transaction with $81.3 million in borrowings under its unsecured line of credit and the issuance of a $120-million financing package involving three loans, all at a 10-year fixed rate of 5.98% that bear interest only for three years and thereafter will amortize over a 30-year period, according to Innkeepers. The REIT adds that the loans are secured by the two Residence Inn hotels and the Hilton Ontario, with Capmark Finance, Inc. acting as the sole underwriter.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.