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The 471-room Renaissance Boston Seaport Hotel has secured a major refinancing deal as the market shows signs of strength.
Barings provided a $115M loan to Rockpoint, Highgate and hotelAVE to refinance the hotel, the Charlotte, North Carolina-based asset manager announced Tuesday. Eastdil Secured brokered the deal on behalf of the borrower.
The hotel at 606 Congress St. in the Seaport was constructed in 2008 and is slated to complete comprehensive renovations in 2025. The hotel includes 21K SF of meeting space and an 11K SF ballroom.
“Fundamentals in the Boston hotel market continue to improve with limited new supply entering the market in the near term,” Barings Managing Director Jonathan Neff said in a statement.
“The Renaissance is well positioned to benefit from its strategic location, surrounded by diverse demand drivers, including a concentration of Boston’s top employers, the Boston Convention and Exhibition Center, and numerous destination retail and entertainment outlets,” Neff added.
In 2011, the hotel was headed for auction after its former owner and original developer, Loeb Partners, defaulted on its mortgage, the Boston Business Journal reported. The property was acquired by San Francisco-based Fillmore Capital Partners in February 2012.
Three years later, the current ownership group bought the property with a $106M loan originated by Wells Fargo, the BBJ reported. The group also acquired the 95-year ground lease signed in 2006 with the Massachusetts Port Authority.
During this Labor Day weekend, 1,200 workers at the hotel as well as the Omni Parker House, Omni Boston Seaport and Westin Boston Seaport went on strike after fighting over workloads, schedules and wage increases in a new contract, NBC Boston reported.
The Boston hotel market continues to be attractive for investors. It has limited new supply and increasing occupancy and revenues. Earlier this month, Ashford Hospitality Trust sold the 315-room Courtyard Boston Downtown hotel on Tremont Street for $123M.
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