BETHESDA, MD-JBG Cos., has secured $65 million in short-term financing to recapitalize its Bethesda North Marriott Hotel here. Mesa West Capital provided the financing in a deal was by Mesa’s east coast principal, Raphael Fishbach.
“This loan is replacing an existing life insurance company loan,” Fishbach tells GlobeSt.com. “The term gives JBG more time to stabilize the property as it is a flexible, floating-rate loan.” Bethesda North Marriott Hotel is performing very well, he adds, and the new loan was secured “to facilitate their ability to continue to improve the numbers.”
Since it acquired the hotel, two years after it delivered, JBG has expanded the hotel’s capacity to 447 rooms, from 225. The expansion was one of a series of projects undertaken via a joint venture between JBG and San Francisco-based MacFarlane Partners. The hotel, which is attached to the 117,000 square-foot Bethesda North Conference Center, also features 35,000-square feet of meeting space. “Over the course of the next two years, the sponsor will look to drive group revenue from improved penetration of the adjacent conference facility,” Fishbach said.
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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.
