Berkadia Commercial Mortgage, a real estate company founded in 2009 as a joint venture between Warren Buffett’s Berkshire Hathaway and Leucadia National Corporation, raised $24 million in financing for the Holiday Inn & Suites Atlanta Airport North.
Director Adrienne Kautzman and analyst Larissa Gooden of Berkadia’s Hotels and Hospitality team worked with Tremont Mortgage Trust to secure the bridge financing for borrower Brandt Hospitality Group. The deal closed on Dec. 21.
The floating rate loan includes initial funding of $21.9 million and a future funding allowance of $2.1 million to complete a property improvement plan. The loan is structured with a three-year initial term and two one-year borrower extension options.
“We were thrilled to work with Tremont and Brandt Hospitality Group on this project,” Kautzman said in a statement. “It was a solid execution by Tremont, which allows Brandt Hospitality Group flexibility on their renovation with funds committed but not funded resulting in no negative [arbitrage], at an attractive leverage point and pricing. With the Atlanta airport going through a significant expansion and a strategic renovation in the pipeline, this property will continue to deliver value for our client and for the millions who travel through Atlanta International every year. We expect clients will continue to refine their portfolios into 2019, with a mixture of acquisitions, dispositions and refinances, both with and without PIPs, to position themselves for what is expected to be slower growth in the coming years."
Holiday Inn & Suites Atlanta Airport North is a 330-key, four-story hotel located within 3 miles of Hartsfield-Jackson International Airport and close to downtown Atlanta.