Located at 3111 Fairview Park Dr., the hotel underwent a total renovation of the guestrooms and corridors recently. JER says it intends to undertake further renovations to the public areas including the lobby, restaurant, lounge, fitness center, gift shop and meeting space.
"JER views Washington, DC as one of the premier lodging markets in the world, with a favorable business climate, strong tourism appeal, and abundant government and military demand," says Cia Buckley, president of US Fund Business at JER, in a statement. "As a result of limited competing supply near the hotel, we believe that the Fairview Park Marriott Hotel is ideally suited to benefit from these strong demand generators."
Marriott International Inc. is the manager of the property under a long-term agreement.
Despite concerns that the current hotel cycle may be nearing its peak in some quarters, financing for projects remains strong. A loan on a property like the Fairview, which has a stabilized cash flow on a trailing 12 to 24 month basis, could be 100 basis points over ten-year Treasury on a fixed basis, estimates Vikram Antin, an associate in Marcus & Millichap REIBC's National Hospitality Group, citing data from MM Cap Corp.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
