Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-A joint venture of HEI Hospitality, Rockwood Capital and Olympus Real Estate has refinanced eight properties acquired from Starwood Hotels in 2003 with a $200-million loan from Lehman Brothers. Lehman Brothers emerged as the winner from a field of 15 lenders vying to refinance the properties.

The assets include Sheraton Buckhead in Atlanta; Hilton Sonoma County in Santa Rosa, CA; Sheraton Ferncroft resort in Danvers, MA; a Sheraton in Danbury, CT; a Westin in Stamford, CT; Sheraton College Park in Beltsville, MD; and a Sheraton in Norfolk, VA. The portfolio includes one property that is being sold as well as another that was closed most of last year for renovations, according to Jones Lang LaSalle, which arranged the financing after fielding 15 bidders.

“Lenders were extremely aggressive, despite the fact that this was a complex transaction,” says Jones Lang LaSalle investment banking senior vice president Rick Hollander. “The refinancing relieved the portfolio from the burden of existing lower leverage and more restrictive senior mortgage and mezzanine financing that had been previously securitized,” explains Jones Lang LaSalle Hotels chief executive officer Arthur Adler, adding the new loan allows HRO to prepay a portion of the debt without penalty.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.