Published in GlobeSt.com
January 28, 2013
By Jennifer LeClaire | Miami
“Innisfree has an amazing track record for both developing and operating their assets, which contributed heavily to our ability to secure permanent debt at a 9% debt yield on adjacent hotels, especially with limited operating history for one of the assets,” says Jeff Bucaro, senior vice president for Aries Capital. The Innisfree portfolio includes a Hilton Hotel and Holiday Inn Resort.
The Hilton is the only full-service hotel in Pensacola Beach and offers 30,000 square feet of meeting space. The Holiday Inn Resort has been open for 18 months. It’s the first new-construction property for the Holiday Inn Resort brand in the country, and earned Innisfree the Intercontinental Hotels Group 2011 Developer of the Year Award and the 2012 Quality Excellence Award. Both properties are on land leases.
The CMBS financing for the portfolio features a 10-year, non-recourse first mortgage and mezzanine loan with a 30-year amortization and a flexible prepayment option for the mezzanine loan. The recently closed loans represent the fourth and fifth completed by Aries Capital for Innisfree Hotels. Earlier in 2012, the firm closed a $57 million three-asset transaction for a portfolio including multiple properties in the Gulf Coast region.