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JLL’s Capital Markets group announced today that it arranged a $430 million refinancing for Fairmont Austin, a 37-story luxury hotel in downtown Austin.
Representing Manchester Financial Group, JLL Capital Markets secured the five-year, interest-only, fixed-rate SASB CMBS loan, with Goldman Sachs acting as lead manager and sole bookrunner. This all-mortgage financing package replaced a $300 million senior loan and $125 million of mezzanine debt.
Fairmont Austin, developed by Manchester Financial Group, spans 1.4 million square feet and stands as the city’s fifth-tallest building. Opened in 2018, the luxury hotel features 1,048 guestrooms and suites, nearly 140,000 square feet of meeting space, a full-service spa, five curated food and beverage outlets, an outdoor resort-style pool deck on the 7th floor, and a grand pedestrian walkway providing direct access to the Austin Convention Center. Located at 101 Red River St., the property is within walking distance to the city’s premier lifestyle and entertainment areas, including Rainey Street, East Austin, and two blocks from Lady Bird Lake.
“This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100% ownership of the hotel. The funds will support the continued growth and enhancement of this premier property, ensuring it remains a top destination for visitors to Austin,” said Papa Doug Manchester.
The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole, and Director Olga Walsh.
“With an influx of recently completed and ongoing construction projects in the immediate area, Fairmont Austin is well-positioned to benefit from the momentum in all directions and capitalize on its position as the epicenter of Austin’s explosive growth,” said Wright.
“Despite today’s challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group. This led to a competitive marketing process and, in the end, beneficial and highly tailored terms for our client,” added Walsh.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. Leveraging in-depth local market and global investor knowledge, the firm delivers best-in-class solutions for clients in investment sales and advisory, debt advisory, equity advisory, or recapitalization. JLL Capital Markets boasts more than 3,000 specialists worldwide, with offices in nearly 50 countries.
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