(Mark Your Calendars: RealShare APARTMENTS EAST, February 15 in Washington DC)
WASHINGTON, DC-Pebblebrook Hotel Trust has secured a $46 million non-recourse loan through Cornerstone Real Estate Advisers, a top commercial real estate lender. The loan has a fixed interest rate of 4.36% with a term of five years. It was secured by a first mortgage on the REIT’s 183-room Hotel Monaco in the District, which it acquired in September 2010 for $74 million.
Proceeds from the loan will be used to pay off the existing $35 million first mortgage on the property, as well as to fund future acquisitions, and for general business purposes.
Pebblebrook, of course, has been an active investor in the hotel industry for the past two years, snapping up key properties from Washington DC to Boston to San Francisco. New York, though, is where it has concentrated its fire power lately. Last summer it partnered with New York City-based Denihan Hospitality Group to buy six upper upscale properties, all in Manhattan. The portfolio was valued at $910 million, or approximately $526,000 per room.
Pebblebrook is among the first wave of REITs to announce financing—a category that includes equity and debt and bank finance. In 2011, REITs raised $37.5 billion in equity, beating 1997’s record of $32.7 billion, according to NAREIT figures. The prior record year for capital raised overall was in 2006, with $49 billion raised.
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