Mesa West Capital funds $55 million loan to refinance Hilton Hotel in Arlington
The New York City office of Mesa West Capital has originated a $55 million mortgage loan to refinance the Hilton Crystal City, a hotel in Arlington.
The nonrecourse, floating-rate, interest-only loan includes an initial term of three years with extension options.
The JBG Cos., a private real estate investment and development firm in the Washington, D.C., area, acquired the hotel adjacent to Ronald Reagan National Airport in 2012.
JBG, which owns 12 hotels in the Washington metropolitan area, renovated the property in September 2013. Improvements included upgrades to the hotel’s 393 guest rooms, lobby, and meeting space as well as adding a new executive lounge and six new studio suites.
After the renovation, the hotel saw a boost in both occupancy and the average daily room rate, Mesa West Capital Assistant Vice President Daniel Tanner said in a statement.
“Our loan will give them the runway to continue to capitalize on the work they’ve started and continue to do there,” Tanner said.
This is Mesa West’s second financing on a JBG-owned hotel and its fourth in the D.C. metro area this year. In March, the Los Angeles-based lender provided JBG with $27 million in first mortgage debt to refinance the 191-room Westin Reston Heights in Reston. Last week Mesa West funded two first mortgage loans totaling nearly $80 million to finance the acquisition of an office portfolio in Reston.
All four loans originated out of Mesa West’s New York City Office.
Nicholas Seidenberg and Michael Zelin of Eastdil Secured arranged the financing.