MCR, and Building and Land Technology (BLT), a premier real estate firm that has developed more than 25 million square feet of real estate across commercial and residential properties, have closed a $632 million, three-year, fixed-rate financing on a portfolio of 53 hotels across the United States.
“This refinancing is a validation of the quality of assets in the portfolio and the attractive operating and financial performance of properties managed by MCR,” says Tyler Morse, Chairman and CEO of MCR.
Carl Kuehner, Chairman of BLT, remarks, “It is a great achievement to accomplish a refinancing of this size and scope in today’s challenging debt environment. Pricing on the bonds was strong with our AAA’s coming in at +145. This deal is a great outcome for our partnership.”
MCR and BLT acquired the 53 hotels — totaling 5,958 guestrooms — between 2013 and 2015. Spread across 14 states, the portfolio is concentrated in high growth markets, including Texas, Arizona, Virginia and North Carolina. The diverse portfolio is comprised of eight Marriott and Hilton extended stay and select service brands, including Residence Inn by Marriott, Courtyard by Marriott, TownePlace Suites by Marriott, Hilton Garden Inn and Hampton Inn by Hilton.
The loan was securitized in a single asset, single borrower (“SASB”) CMBS transaction with the portfolio valued at $960 million.
The hotels are managed by MCR’s in-house operations team, which includes 7,000 professionals across 150 hotels. Under the stewardship of MCR and BLT, the portfolio achieved over $64 million of NOI on a trailing 12-month basis at closing, up from $55 million NOI in 2021. Since acquisition, MCR and BLT collectively invested over $118 million of capital expenditures into the portfolio across guestroom improvements, public space upgrades and general property maintenance.
Citigroup Global Markets acted as manager and book runner on the transaction. Eastdil Secured LLC served as exclusive advisor to MCR and BLT. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor.
