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Four Seasons Austin owner refinances US$56m mortgage

AUSTIN, TEXAS Lodging Capital Partners and Syndicated Equities Group have secured a US$56 million first mortgage loan to refinance their existing mortgage on Four Seasons Austin. The financing by Mesa West Capital also includes a mezzanine loan from Blackstone Real Estate Debt Strategies.

Overlooking Lady Bird Lake in Austin, the Four Seasons is located in the heart of the central business district adjacent to the state capitol and University of Texas. After acquiring the landmark hotel in 2006, the ownership group completed a US$11.4 million renovation that included an upgrade of the guestrooms, a new 5,500 sq.-ft. luxury spa, and a redesign of the hotel’s fine-dining restaurant.

“Despite the uncertainty surrounding the economy, this property continues to build its market share and reaffirm its status as the premier hotel in Austin,” says Mesa West Capital Director Raphael Fishbach, who originated the loan and heads up the company’s New York City office. “Knowing the strength of both the property and the sponsorship, we looked to win this assignment by providing speed and certainty of execution in a challenging market for hotel financing.”

The financing was arranged by Mark Gordon and Jared Kelso of Cushman & Wakefield Sonnenblick-Goldman and Elizabeth Kogen of JMB Financial Advisors.

Mesa West Capital provided the financing through its US$614.5 million Mesa West Real Estate Income Fund II LP, which closed in June. Mesa West has originated more than US$160 million in financings through the fund. Mesa West’s first fund originated US$1.5 billion over 83 financings.

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