TPG Capital and Deutsche Bank have provided $200m to refinance the 150-room Mark Hotel on Manhattan’s Upper East Side.
TPG provided $150m and Deutsche took the remaining $50m backing the nearly 90-year-old landmark hotel.
Alexico Group, which purchased the hotel in 2006, closed the property down in 2007 for a major gut renovation.
In March of 2011, with Dune Real Estate Partners, Alexico purchased a $190m mortgage backing the hotel from Anglo Irish Bank. Alexico paid off Dune Real Estate Partners in January 2014, at which point Deutsche Bank provided Alexico with a $200m loan which the latest loan refinances.
Fort Worth, Texas-based TPG in January acquired the majority of a $2.5bn portfolio of high-yield real estate loans from Deutsche Bank’s Special Situations Group, taking along with it a team of 11 origination and risk management professionals.
The private equity firm, through a newly-formed REIT called TPG Real Estate Finance Trust (TRT), acquired a 75% stake in the existing portfolio, and it raised $750m in capital from institutional investors for new loan originations. Deutsche Bank retained a 25% interest.
“We are very fortunate to have the same strong Deutsche Bank team in place, which will provide continuity for current borrowers and open the door to relationships with the growing number of new borrowers in need of financing,” said Avi Banyasz, TPG partner and co-head of TPG Real Estate, at the time.
In June, Blackstone hired Deutsche Bank’s former global head of commercial real estate, Jonathan Pollack, as chief investment officer for Blackstone Real Estate Debt Strategies (BREDS). Pollack, who had overseen the Special Situations group at Deutsche Bank, reports to Mike Nash, the global head of BREDS.