Savills Advises Fortress, Northstar on $72M Mezzanine Loan Sale on Columbia Sussex Hotel Portfolio
The portfolio was sold to The Blackstone Group for an undisclosed price.
October 18, 2010
By Allison Landa, News Editor
Courtesy Flickr Creative Commons user smittenkittenorig
Acting as exclusive financial advisor to Fortress and Northstar, Savills plc has facilitated the sale of the pair’s $72 million mezzanine loan on the Columbia Sussex hotel portfolio. The portfolio was sold to The Blackstone Group for an undisclosed price.
The restructuring became necessary after a severe drop in RevPAR amonst the portfolio, largely due to the predominance of hotels associated through a CMBS with the now-defunct Bear Stearns. The portfolio encompasses 14 hotels, 13 of which have been rebranded from Wyndham to Starwood, Hilton, Sheraton and Marriott.
According to Savills New York CEO John Lyons, the firm plans to see more instances of unwinding capital stacks as price discovery continues and holders of multi-tranche mezzanine structures grow motivated to sell.
The portfolio was originally held by Blackstone, who sold it to Columbia Sussex in 2005.
Savills is based in the United Kingdom and was established in 1855. Today it has more than 200 offices and 19,000 employees throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.
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