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Monday, 09 May 2011

In Its First Deal, REIT Pays $43.6 Mln for Stake in 2 Calif. Hotels

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Commercial Real Estate Direct Staff Report

Carey Watermark Investors has paid Ensemble Hotel Partners $43.6 million for a 49.5 percent stake in two neighboring hotels with 372 rooms in Long Beach, Calif.

The stakes in the 194-room Hotel Maya and the 178-room Marriott Residence Inn- Long Beach Harbor are the first acquisitions by Carey Watermark, which registered last year to raise up to $1 billion through the sales of shares. It has been in the market to acquire full-service and select-service hotels, including boutique and resort properties, and mixed-use projects in urban areas.

The non-traded REIT's sponsors are W.P. Carey & Co., a New York investment manager that is best known for office and industrial property investing, and Watermark Capital Partners, a Greenwich, Conn., investment manager led by Michael Medzigian, a former head of Lazard Freres Real Estate Investors.

The REIT, which is offering shares for $10 each, said it had met its offering's requirement to sell at least 1 million shares on March 3. In its registration filing, it said it planned to use debt financing to cover about 50 percent of the value of its investments.

Ensemble Hotel developed the all-suites Marriott Residence Inn at 600 Queensway Drive, and it recently completed a major renovation of the Hotel Maya resort at 700 Queensway Drive. The Maya, which operates under the Doubletree by Hilton brand, includes a 60-slip marina and 20,000 square feet of meeting space. Ensemble Hotel is an affiliate of Ensemble Real Estate, a Phoenix developer and property manager.

The properties are the only hotels along the Long Beach Harbor. They also are near a Carnival Cruise Line terminal, which attracts about 300,000 visitors annually.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.



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Additional Info

  • Syndicate to Realpoint: No
  • States: California
  • Sector: Hotel & Resort
  • Subject: Property Acquisitions (ACQ)
  • Company: Weeks Corporation
  • Valuation: Between $25 million and $50 million
Read 506 times Last modified on Wednesday, 11 May 2011

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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