DALLAS, Texas—Ashford Hospitality Belief, Inc. introduced it has refinanced its mortgage mortgage secured by the 703-room Marriott Crystal Gateway Lodge positioned in Arlington, Virginia, which had a ultimate maturity date in November 2026.
The brand new, non-recourse mortgage totals $121.5 million and has a three-year preliminary time period with two one-year extension choices, topic to the satisfaction of sure situations. The mortgage is curiosity solely and supplies for a floating rate of interest of SOFR up 4.86 %. The refinancing resulted in roughly $31 million of extra proceeds that will probably be used to pay down the corporate’s strategic financing.
The corporate had beforehand introduced a discount within the exit price on its strategic financing from 15 % to 12.5 % of the unique mortgage steadiness by means of December 15, 2024, offered that the excellent mortgage steadiness had been decreased to $50 million or much less by November 15, 2024. The $31 million pay down together with a further paydown the corporate intends to make subsequent week, will lead to a mortgage steadiness beneath $50 million, triggering the decreased exit price.
“We’re happy to finish this refinancing of the Marriott Crystal Gateway and generate vital proceeds to go towards paying down our strategic financing,” commented Stephen Zsigray, Ashford Belief’s president and CEO “We proceed to make significant progress in our plan to repay this financing by the tip of this yr.”
Ashford Hospitality Belief is an actual property funding belief (REIT) targeted on investing in higher upscale, full-service lodges.
