Dealmaker: Phillips Realty Capital Secures $70M for Hotel, Apartments
Michael Tucker firstname.lastname@example.org
Phillips Realty Capital, Bethesda, Md., secured $70 million in commercial mortgage-backed securities and life company financing for hotel and multifamily assets in Virginia and Texas.
In Herndon, Va., Phillips Realty Capital Principal Mark Remington arranged $30 million to refinance the recently renovated 324-room Crowne Plaza Dulles Airport Hotel. Bank of America Merrill Lynch's commercial mortgage-backed securities team provided the permanent financing.
Located half an hour from Washington, D.C. and two miles from Dulles International Airport, the Crowne Plaza Dulles is part of the InterContinental Hotels Group family.
Rocks Engineering developed the hotel in 1986 as a Days Inn. The company has since repositioned the property as a commercial transit and group-oriented hotel for business travelers. It received a $12 million renovation and repositioning in 2015 and 2016 and now includes 10,000 square feet of flexible meeting space and an on-site restaurant.
Reliable corporate accounts collectively book more than 6,000 room nights per year, Remington said.
"While capital markets have tightened for the hotel sector, Rocks made strategic investments and developed a solid business plan that is driving consistent occupancy and rate, so we were able to compete this deal to a wide variety of lenders," Remington said.
Phillips also secured $40 million of long-term financing from New York Life Insurance Co. for Weinstein Properties to purchase a 334-unit Class A apartment community 30 minutes north of Dallas. Managing Director Charles DuBose structured the long-term fixed-rate loan.
Located just outside downtown McKinney, Texas, Century Lake Forest will be rebranded as Bexley Lake Forest. The acquisition is the third community Weinstein has acquired in the Dallas/Fort Worth market and the firm's ninth Texas asset.