Marathon Real Estate Serves as Lead Equity Investor in Largest Hotel Development in San Antonio Hist
SAN ANTONIO, TX, June 13, 2005. Marathon Asset Management, LLC and its investment group, Marathon Real Estate, today announced that it is the lead equity investor in the $285 million total cost projected to build the largest hotel development in San Antonio's history. The 885,000 square foot, 1,000-room hotel will be adjacent to the downtown Henry B. Gonzalez Convention Center. Marathon Real Estate is a division of Marathon Asset Management, LLC, a global alternative investment and asset management company with $4.3 billion in capital.
FaulknerUSA, who will develop the project, has also made an equity investment. In addition, the deal will be financed with $208 million of pre- funded project revenue bonds in a two-part transaction that includes Empowerment Zone Bonds and Taxable Bonds.
"San Antonio enjoys a vibrant market with great opportunities, and is one of the top ten cities for overnight leisure travel in the U.S.," said Jon Halpern, Managing Director and head of the Real Estate Group at Marathon Asset Management. "We are proud to be a part of this historic undertaking and are impressed with the city's vision and hospitality."
Halpern continued, "We work hard to leverage our developer experience and flexibility to deliver creative financing solutions for complex transactions, and we are pleased to see that this uniquely structured public/private partnership has come together after much due diligence and hard work."
Under the terms of the lease signed earlier this week, Hotel Investments, LP, a partnership of Marathon Real Estate and FaulknerUSA, will lease the site from the City of San Antonio pursuant to a 75-year ground lease and License Agreement with an option to extend 15 years. FaulknerUSA will be responsible for the construction of the hotel, to be completed in 2008. A groundbreaking ceremony will be conducted today at the site.
Located in downtown San Antonio on the Riverwalk, the hotel's 1,000 rooms will cover approximately 550,000 of the total 885,000 square feet. The hotel will also consist of a grand ballroom of approximately 32,700 square feet, a junior ballroom of approximately 21,600 square feet, and pre-function space of approximately 62,765 square feet. Hyatt Corporation will manage the hotel.
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