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PHILADELPHIA-Locally based Keating Group has obtained $53 million in financing for its Hyatt Regency Philadelphia at Penn’s Landing. The 22-story, 350-room asset was built by Keating in 2000 in anticipation of continued redevelopment of the swath of property along the Delaware riverfront.

The funding includes a first mortgage of approximately $45 million by Credit Suisse First Boston and an $8-million mezzanine loan originated by Dallas-based Ashford Hospitality Trust. According to an Ashford spokesman, Ashford’s investment in the capital structure is approximately at a 69% to 82% loan-to-value ratio, which he says puts the value of the property at between $64.6 million and $76.8 million.

The mezzanine financing is for a five-year term and bears interest at a fixed rate of 14% for the first year. It increases 100 basis points each year of the term until it reaches 18% in year five. It matures in April 2010 and is locked out from prepayment through December 2007. Ashford received an origination fee of 2.56%.

Calling Hyatt Regency Philadelphia “a well known hotel, with a superb location, proven sponsorship and a strong brand,” Monty J. Bennett, Ashford’s president and CEO, says, “We were able to offer a fixed-rate loan with locked interest steps tailored to the needs of the borrower.” The property, he added, has “excellent debt service coverage and improving fundamentals.” Calls to Keating were not returned by deadline.

The Hyatt is Philadelphia’s newest and only waterfront hotel. It is managed by Hyatt and contains 24,000 sf of meeting space on two floors, two ballrooms, seven meeting rooms and a boardroom, an indoor pool, 24-hour business center, fitness center, and Keating’s Bar and Restaurant. There is also an attached six-story parking garage.

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