Wells Fargo has led a syndicate including four other banks on a five-year, $250m senior loan to refinance the AAA four-diamond Hyatt Regency Hotel in New Orleans, Real Estate Capital has learned.
In addition, New York-based private investment firm Square Mile Capital Management originated an additional $40 million mezzanine loan on the 1,193-room hotel, which was completely reconstructed and re-opened in 2011, for a total $290 million refinancing package.
The borrower, a partnership between funds managed by Ares Management and local real estate investor Chris Robertson, acquired the property in 2007 following its closure in 2005 due to significant storm damage from Hurricane Katrina.
The hotel features 192,000 sq ft of meeting space on four levels, including two 50,000 sq ft ballrooms, two separate exhibition halls, and an array of meeting and breakout rooms. The property also has eight food and beverage outlets, a 25,000 sq ft leisure pool deck, a fitness center, and the Regency Club. The Hyatt is adjacent to the Mercedes-Benz Superdome and the New Orleans Arena, five blocks south of Canal Street and the French Quarter.
Wells Fargo, the top originator of commercial/multifamily mortgages in 2015, according to the Mortgage Bankers Association, did not immediately respond to requests for comment.