ATLANTA-Locally based Novare Group Holdings LLC has received $22 million in refinancing for the 101-room Twelve Atlantic Station Hotel. The asset was developed as part of the District at Atlantic mixed-use development.

New York-based CharterMac provided the first lien mortgage using two of its subsidiaries, American Mortgage Acceptance Co., which is a mortgage REIT advised by CharterMac, and ARCap, a fund manager acquired by CharterMac. The A/B note structure was funded via CharterMac Direct and an investment fund managed by ARCap. An additional $2 million is being held as a future funding option that will be funded the property achieves stability. The $2 million will be added to the B note.

Located at 361 17th St., Twelve Atlantic Station comprises the first six floors of a 26-story residential tower constructed over a three-level parking deck. It has been open since February. The tower's first floor has separate lobbies for the hotel and condos, but amenities are shared between hotel guests and residents. At an average of 798 sf, the hotel rooms have similar floor plans to the condos.

In addition to the hotel and condos, the District at Atlantic Station development includes one million sf of restaurants, retail and shopping space and over six million sf of new office space. "This hotel is somewhat unique," CharterMac director of loan originations Mike Allen, located in the company's Irvine, TX office, tells GlobeSt.com. "The developers have a backstop. If necessary, the hotel rooms could be liquidated because they have similar layouts as the condos."

With corporate and leisure travel on the rise in Atlanta and little new construction, the hotel market has been thriving, Allen notes. "The Atlanta hotel market is experiencing an imbalance in supply and demand as builders are expected to deliver less than 1% to the room inventory this year," he says. "This imbalance, coupled with an increasing average daily rate [ADR] positions Twelve Atlantic Station Hotel well for anticipated success in the foreseeable future."