ORLANDO-Two tourist and business-oriented hotels have received a total $373.7 million in new financing from Horsham, PA-based GMAC Commercial Mortgage Corp. The deals represent the largest of their kind so far this year in Central Florida, according to GlobeSt.com research.
GMAC is providing a total $365 million at a floating rate of interest to the 27-story, 891-room Peabody Orlando, the city's first convention hotel when it opened in 1986. The five-story, 200-room Fairfield Inn Orlando, also in the city's tourist corridor, has received $8.7 million.
Area mortgage bankers tell GlobeSt.com the Peabody's financing package was expected since the 861,000-sf hotel previously announced its expansion plans. In the funding package's first phase, GMAC is providing $110 million to refinance the hotel's existing debt and financing the construction of a 2,100-space parking garage.
An additional $255 million will be used by the hotel to add 750 rooms, 145,000 sf of meeting space, a full-service spa and other support facilities and amenities on its 28.3-acre site. The second phase of the loan is tentatively scheduled to close in the second quarter.
When the Peabody's new construction is completed in about 2008, the hotel at 9801 International Dr. will have 1,641 guest rooms and a total 199,000 sf of meeting space. UST Hotel Joint Venture Ltd., a partnership of affiliates associated with Memphis-based Belz Enterprises, owns the Peabody which is a Mobil four-star AAA four-diamond rated hotel.
In the separate, non-related financing transaction, GMAC's $8.7-million loan will be used by Fairfield Inn Orlando owners as interim refinancing to pay down existing GMAC loans, GMAC vice president Chris Clark says in a prepared statement. The 104,416-sf hotel on 2.93 acres at 7495 Canada Ave. is owned by Canada Avenue Hotel Associates Limited Partnership.
Both transactions were arranged and underwritten by GMAC's Hospitality Industry Division. GMAC declined GlobeSt.com's request for details on the loans' lengths and interest rates. "We do not disclose the length of our hospitality loans," Jill C. Hindman, the company's external communications manager, tells GlobeSt.com.
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