ALEXANDRIA, VA-Alexandria Hotel Associates received financing to the tune of $25 million for the Hampton Inn located in the Old Town district. The funds, which came in the form of a permanent fixed-rate loan, will be utilized for the construction of an addition to the 156-suite hotel.
GMAC Commercial Mortgage Corp. orchestrated the financing through GMACCM's Hospitality Industry Division. Alexandria Hotel Associates has owned the property since 1997. According to Fairfax County records, the hotel and the two-acre parcel it occupies at 5821 Richmond Hwy. have a total current assessed value of approximately $14 million.
The property is one of three Hampton Inns in Alexandria. Built in 1967, the seven-story structure consists of 90,600 sf, including 4,500 sf of meeting space, a fitness facility and a gift shop. Alexandria Hotel Associates plans to expand the property with the construction of a 41,500-sf seven-story addition containing 57 more suites, a business center, offices and a shop. The transformation will culminate in the change of the hotel's brand name from Hampton Inn to Hampton Inn & Suites.
"This highly structured transaction represents the third hospitality-related loan between GMACCM and the borrower in 2005," says David Fishler, vice president in the New York loan origination office. "To date we have funded more than $50 million in loans for this borrower."
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