Dual-Branded Hotel Uses Funds to Repatriate Sponsor Equity
The borrower, White Lodging, will use loan proceeds will be used to retire the existing construction loan, repatriate a portion of sponsor equity, and cover closing costs for Aloft and Element Austin Downtown.
AUSTIN, TX—The Aloft and Element Austin Downtown opened in July 2017 as the first dual-branded hotel in Austin. The assets include the LEED-certified 278-room Aloft and 144-suite Element, along with two restaurants and bars.
Two years later, Holliday Fenoglio Fowler LP worked on behalf of the borrower, White Lodging, to place the 10-year fixed-rate refinancing loan with PGIM Real Estate Finance. Loan proceeds will be used to retire the existing construction loan, repatriate a portion of sponsor equity and cover closing costs.
The development is one block from the confluence of the Sixth Street Entertainment District and Congress Avenue, which provides live music venues, restaurants and retail. Additionally, the hotel is near the Second Street District, Austin Convention Center, University of Texas at Austin and the Texas State Capitol Building.
The HFF debt placement team representing the borrower consisted of senior managing director Danny Kaufman, managing director Christopher Carroll, senior director Jeff Bucaro and director Nicole Aguiar along with senior managing director Doug Opalka.