What's $46M, good for at least three years with a floating rate of 5.75%? The senior mortgage loan that allowed a local JV to buy two major Atlanta hotels.
NorthStar Income II reports to the SEC that it made a senior mortgage loan for $46M to allow Global Management & Investment and Compass Real Estate to buy Novare Group's two Twelve Hotel locations in Atlanta.
The hotels—a 101-room tower at Atlantic Station (here) in Midtown and a 102-unit hotel in Downtown Atlanta—encompass more than 300k SF of hotel space and nearly 21k SF of retail.
The deal also means both hotels are being reflagged: The new owners will keep the name but will blend into the Marriott Autograph Collection. The 36-month senior loan—with two 12-month extensions—includes a floating LIBOR rate, according to NorthStar's SEC filing.
Officials with Compass tell us the projects will allow them to reposition the hotels to "create a compelling and classic value-add investment opportunity," especially purchased below replacement cost.
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