The hotel is located in the Park Square area of the city and features 356 guest rooms, 20,000 sf of meeting space, three private dining rooms, two restaurants, a golf school and a 400-seat theater.

Despite the fact that hotel financing is historically tricky--and has become even more so in the wake of the current recession--both Scott Zucker and Tony Jaffe, managing directors with CDC insist that they have confidence in the performance of this asset. Zucker points out to GlobeSt.com that the hotel does well, but perhaps more significantly, it is balanced by other uses such as the garage, retail space and the theater. "It's really a mixed-use property," he notes.

"We feel comfortable with the sponsor and the assets," adds Jaffe who acknowledges that while this is a "difficult time" in capital markets, he believes that that is the wrong way to approach business. "A lot of people are running away from hotels. We don't put an 'X' on any asset type. We look at each individual asset and we believe [the hotel industry] will continue to grow."

Jaffe points out that a strong component of the property is the garage and notes that the neighborhood is in the process of being revitalized. A Ritz Carlton is being developed around the corner. "This is really a mixed use property with a hotel in an 'A' location," he says.

The city's lack of developable sites adds to the investor's confidence in this asset. "There aren't really sites [in the city] for new hotels," says Zucker. "There is nowhere to build." Jaffe agrees that Boston is "supply constrained."

John Philopoulos Associates Trust is affiliated with JPA Corp., a privately held, family run, real estate development and management firm based in Boston. The firm was founded in 1937 and primarily develops retail and hotel properties throughout central New England. CDC Mortgage Capital, the US real estate financing unit of CDC IXIS of Paris, has originated or purchased as a principal more than $7 billion in loans since June 1999, including more than $950 million in originations over the last six months. This is the firm's third recent deal in the area. It recently purchased Swansee Mall in Swansee, MA and is in the process of negotiating to purchase another regional mall in an undisclosed location.