RobertDouglas Advises Ashford Hospitality Trust on the $86-Million Refinancing of Crystal Gateway Marriott in Arlington, Virginia
RobertDouglas advised Ashford Hospitality Trust (NYSE: AHT) in successfully refinancing its existing CMBS loan for the 701-room Marriott Gateway Crystal City in Arlington, VA with a best-in-class institutional balance sheet lender.
The new, non-recourse senior mortgage totals $86-million and has a three-year initial term with two, one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR + 4.65% with a 0.10% LIBOR floor. The initial funding for the loan will be $84.0 million, with the additional $2.0 million available to fund debt service for the first 30 months of the loan, if needed.
Located across the street from Amazon's new HQ2, the Crystal Gateway Marriott will continue to lead the Crystal City market. The Property's highly desirable location is also within minutes of downtown Washington, D.C. and less than a mile from Ronald Reagan Washington National Airport. The 2018 announcement of the new Amazon Headquarters fueled additional development projects in the expanding D.C. submarket including the National Landing redevelopment and Virginia Tech's new Innovation Campus.
Stephen O'Connor, Principal and Managing Director commented "The submarket's major demand driver growth attracted strong interest from institutional lenders to the Crystal Gateway Marriott financing. We are encouraged by the substantial interest from capital providers seeking to invest in the hospitality sector signaling that activity is expected to increase into the first half of 2022."