Hypo Buys $40M Debt on JW Marriott

MIAMI-New York-based Hypo Real Estate Capital Corp., purchased debt on the JW Marriott at 1109 Brickell Ave. for $40 million, or $135,000 a room. Locally based MDM Brickell Hotel Group Ltd. is the borrower.

This is Hypo’s first purchase of debt in the secondary market, according to Evan F. Denner, head of real estate finance for Hypo. He says his company is “continuing to build our market presence in Miami.”

JW Marriott is a 21-story, 296-room luxury hotel with 13,200 sf of banquet space, an outdoor pool, health club and five on-site restaurants and lounges. It opened in May 2000, and, according to MDM is the first hotel built in Miami in decades to offer five-star amenities. It opened as the ninth property for this hotel brand in the US.

Hypo is a subsidiary of Dublin-based Hypo Real Estate Bank International, a major lender in the US commercial real estate market. The New York subsidiary has closed more than $18 billion in construction, fixed-rate, floating rate and mezzanine loans over the past five years.