JLL's Capital Markets group arranged a $430 million refinancing for the Fairmont Austin, a 37-story hotel in downtown Austin. JLL Capital Markets represented Manchester Financial Group in securing the five-year, interest only fixed-rate single-asset, single-borrower commercial mortgage-backed securities loan, with Goldman Sachs acting as a lead manager and sole bookrunner. The all-mortgage financing package was used to replace a $300MM senior loan and $125MM of mezzanine debt.
Fairmont Austin spans 1.4 million square feet, standing as the city's fifth-tallest building. Developed by Manchester Financial Group, the luxury hotel first opened in 2018 and has 1,048 guestrooms and suites, 140,000 square feet of meeting space, a spa, five food and beverage outlets, an outdoor pool deck on the seventh floor and a pedestrian walkway providing direct access to the Austin Convention Center. The property is within walking distance to Rainey Street, East Austin and two blocks from Lady Bird Lake.
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," Wright said in a statement.
"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," Walsh added.