This is the Washington-based company’s first ever credit-focused investment vehicle.
The US hotel sector is largely defying expectations as the country emerges from the pandemic, but it continues to be a bifurcated market, Rob Murray writes
JLL Capital Markets arranged the $220m loan, of which about $65.8m is comprised of preferred equity.
However, some institutions believe equity deals still are more attractive than debt investments in multiple respects.
The borrower in the deal is American Lions, a joint venture between Fetner Properties and the Lions Group.
The global manager offers residential investors equity-like capital, lending around $40m per project.
A 25 basis point increase would be a rise in the Federal Funds target rate from its current level of 4.75-5% to 5-5.25%.
The Federal Deposit Investment Corp seized the bank and sold control of it to JPMorgan on May 1.
The Boston-based manager still sees difficulty lining up debt for most projects.
Berkadia on tap as originator as California manager targets mixed income and other affordable housing asset types.