A California firm has refinanced one of the largest hotels in Central Texas in a $430 million deal.
Manchester Financial Group, working with Goldman Sachs and JLL Capital Markets, refinanced the 37-floor Fairmont Austin at 101 Red River St. in downtown Austin as part of a five-year loan deal.
The loan is part of an all-mortgage financing package that replaces a $300 million senior loan and $125 million of mezzanine debt, according to a JLL Capital Markets statement.
“This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100% ownership of the hotel," Manchester Financial Group Founder Papa Doug Manchester said in a statement. "The funds will support the continued growth and enhancement of this premier property, ensuring it remains a top destination for visitors to Austin."
The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole and Director Olga Walsh.
“Despite today’s challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group,” Walsh said in a statement.
Fairmont Austin, one of the most recognizable hotels in downtown Austin, reportedly hit the market last year as a loan on the property was approaching maturity. The property that opened in 2018 next to the Austin Convention Center was forecast to fetch bids of about $575,000 per room, for a total of more than $600 million, according to Real Estate Alert.
Fairmont Austin's ownership — a joint venture between Manchester Financial Group and Colony Capital — had hired Eastdil Secured to market the 1,048-room hotel for sale, according to Real Estate Alert.
Manchester Financial Group did not immediately respond to a request to comment about the company’s plans for the hotel in light of the refinancing.
Fairmont Austin is the city’s fifth-tallest building and spans about 1.4 million square feet.