The three-year, 7.08%-interest loan replaces the original first mortgage on the property which Noble developed for $9.4 million. The new loan follows RockBridge's July 2002 closing of a $1.3 million mezzanine loan, later increased to $1.8 million.
At closing, RockBridge sold a senior participation in the first mortgage and retained the $1 million balance in the RockBridge Real Estate Fund LLC, RockBridge managing director James T. Merkel says in a prepared statement. "When combined with the original mezzanine load, the first mortgage loan originated by RockBridge represents 86.5% of the project's total capitalization," Merkel says.
He calls the hotel "a strong performing property" whose RevPAR penetration in the market has "consistently exceeded 100% since March 2001." Since opening in December 1999, the hotel "has outperformed the market and has generated strong NOI returns," Merkel says.
Noble has managed the property since 1999. The Georgia developer holds 25 hotel properties in its portfolio and operates 19 largely suburban corporate and mid-scale hotels throughout the U.S.
RockBridge has originated $2.6 billion in real estate projects since 1993 and placed $450 million of investor equity.
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