$430M in refinancing arranged for the luxury hotel, Fairmont Austin

Rhea-AI Summary

JLL Capital Markets has successfully arranged a $430 million refinancing for the luxury hotel, Fairmont Austin, on behalf of Manchester Financial Group. The refinancing replaces a $300 million senior loan and $125 million mezzanine debt, facilitated by a five-year, interest-only fixed-rate SASB CMBS loan with Goldman Sachs as the lead manager. Fairmont Austin is a significant 37-story landmark in downtown Austin, featuring 1,048 guestrooms, extensive meeting space, and various luxury amenities. The refinancing aims to enhance the property's offerings and maintain its status as a prime destination.

Positive

• Secured $430 million refinancing.
• Replaced $300 million senior loan and $125 million mezzanine debt.
• Five-year, interest-only fixed-rate SASB CMBS loan arranged.
• Goldman Sachs acted as lead manager and sole bookrunner.

Negative

• None.

JLL Capital Markets represented the borrower in refinancing of the one-of-a-kind landmark hotel asset in Austin, Texas

SAN DIEGO, July 8, 2024 /PRNewswire/ -- JLL's Capital Markets group announced today that it arranged a $430 million refinancing for Fairmont Austin, a 37-story luxury hotel in downtown Austin.

JLL Capital Markets represented Manchester Financial Group in securing the five-year, interest only fixed-rate SASB CMBS loan, with Goldman Sachs acting as a lead manager and sole bookrunner. The all-mortgage financing package was used to replace a $300MM senior loan and $125MM of mezzanine debt.

Fairmont Austin spans 1.4 million square feet, standing proudly as the city's fifth-tallest building. Developed by Manchester Financial Group, the luxury hotel first opened in 2018 and features 1,048 guestrooms and suites, nearly 140,000 square feet of meeting space, a full-service spa, five curated food and beverage outlets, an outdoor resort-style pool deck on the 7th floor and a grand pedestrian walkway providing direct access to the Austin Convention Center. Located at 101 Red River St., the property is within walking distance to the city's premier lifestyle and entertainment areas including Rainey Street, East Austin and two blocks from Lady Bird Lake.

"This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100% ownership of the hotel. The funds will support the continued growth and enhancement of this premier property, ensuring it remains a top destination for visitors to Austin," said Papa Doug Manchester.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole and Director Olga Walsh.

"With an influx of recently completed and ongoing construction projects in the immediate area, Fairmont Austin is well-positioned to benefit from the momentum in all directions and capitalize on its position as the epicenter of Austin's explosive growth," said Wright.

"Despite today's challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group. This led to a competitive marketing process and, in the end, beneficial and highly tailored terms for our client," added Walsh.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL's newsroom.

About Manchester Financial Group
Founded in 1970 by Papa Doug Manchester, Manchester Financial Group is headquartered in San Diego, California, and specializes in hotel and commercial real estate development. Over the past few decades, Manchester Financial Group has developed more than $5 Billion in assets worldwide and continues to be one of San Diego's largest and most profitable private companies. For additional information on Manchester Financial Group, please visit http://manchesterfinancialgroup.com.

About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Contact: Grace Lewis, JLL PR
Phone: +1 903 520 3478
Email: grace.lewis@jll.com

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SOURCE JLL

FAQ

What refinancing deal did JLL arrange for Fairmont Austin?

JLL arranged a $430 million refinancing deal for Fairmont Austin, replacing a $300 million senior loan and $125 million mezzanine debt.

Who represented the borrower in the refinancing of Fairmont Austin?

JLL Capital Markets represented Manchester Financial Group in the refinancing of Fairmont Austin.

Who was the lead manager for the Fairmont Austin refinancing deal?

Goldman Sachs acted as the lead manager and sole bookrunner for the Fairmont Austin refinancing deal.

What is the significance of the $430 million refinancing for Fairmont Austin?

The $430 million refinancing will support the continued growth and enhancement of Fairmont Austin, ensuring it remains a top destination.

How many guestrooms and suites does Fairmont Austin have?

Fairmont Austin features 1,048 guestrooms and suites.