Canadian Imperial Bank of Commerce (CIBC) has provided a $55.1 million floating rate loan to Pearlmark for the refinancing of the The Ritz-Carlton, Denver in Colorado.
Toronto-based CIBC has a history of financing US hotels. The bank reportedly originated a $90 million loan on Marriott’s Courtyard New York Manhattan/Times Square and a $151 million loan on Marriott’s Residence Inn New York Manhattan/Times Square, both of which will mature later this year.
Those were securitized loans, however, and The Ritz-Carlton, Denver loan is not, Real Estate Capital confirmed with HFF, which arranged the deal. The broker declined to comment further on the loan’s terms.
The 202-room, full-service, AAA Five-Diamond hotel, which opened in 2008, underwent $9.3 million in capital improvements between 2013 and 2015. It sits on .5 acres at 1881 Curtis Street and features 12,400 sq ft of meeting and event space, an Elway’s Restaurant, spa, recently-renovated fitness center, a lap pool and indoor climbing wall.
Hotels and their income streams are both cyclical and volatile, and hospitality has typically faltered before other major asset types when previous cycles turned. But, with riskier assets comes the potential for greater rewards. Lodging loans make up 16.62 percent so-called wall of maturities set to come due through 2017, according to Trepp data.
Late last month, another Ritz-Carlton-branded hotel, the Ritz-Carlton South Beach in Miami, Florida, was refinanced with a $210 million loan from Societe Generale and Cantor Commercial Real Estate (CCRE).
Chicago-based Pearlmark is a private equity real estate investment firm focused on value-added and core/core-plus strategies through institutional commingled investment vehicles and separate accounts. Pearlmark and its partners have committed over $5 billion of equity capital to the firm’s investment activities.
The firm has its own lending platform as well. Since its inception in 1996, the firm has made more than 500 office, industrial, retail, multifamily and mezzanine loan investments nationwide, representing a gross investment of over $12 billion.