Downtown Austin's Fairmont hotel has scored $430 million in refinancing, a CMBS loan brokered by Chicago real estate powerhouse JLL.
The borrower, San Diego-based developer Manchester Financial Group, used the five-year, fixed-rate loan to replace a $300 million senior loan and $125 million of mezzanine debt, which Berkadia arranged in 2019, according to a Tuesday press release.
At 37 stories, the Fairmont Austin at 101 Red River Street is the city's fifth tallest building. The 1.4 million-square-foot hotel has 1,048 guest rooms and suites, 140,000 square feet of meeting space, a spa, five dining options, a seventh-floor outdoor pool deck, and a pedestrian walkway connected to the Austin Convention Center.
Tim Wright, Aldon Cole, and Olga Walsh of JLL’s capital markets debt advisory team arranged the interest-only loan through Goldman Sachs, which acted as lead manager and sole bookrunner in the transaction. Walsh said the marketing process for the refinancing was “competitive” due to the property’s location and strong sponsorship of Manchester Financial Group, which delivered the Fairmont Austin in 2018.
“The funds will support the continued growth and enhancement of this premier property" through Manchester's 100 percent ownership, said founder Papa Doug Manchester.
