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July 07, 2017  

JP Morgan to Lead Loan on Resort Portfolio

J.P. Morgan has agreed to lead a $1.6 billion loan to Centerbridge Partners on a portfolio of family resorts.

Citigroup, Goldman Sachs and Barclays are the other lenders participating in the financing of the Great Wolf Lodge chain of hotels and indoor waterparks. The syndicate will securitize some or all of the floating-rate debt in an upcoming stand-alone offering.

The loan will replace $1.08 billion of debt originated two years ago by J.P. Morgan and Citi, which securitized the senior $715 million portion (JPMCG, 2015-WOLF). That loan financed Centerbridge’s 2015 purchase of Great Wolf Resorts from another New York private equity firm, Apollo Global, for $1.4 billion.

The portfolio backing the 2015 loan encompasses eight resorts with 3,181 hotel rooms, equity interests in two other properties and management rights to three more. The net operating income was $135.2 million last year, up from $133.7 million the year before, according to servicer reports.

It’s unclear whether the new, larger mortgage would have any different collateral. The chain’s newest property, which opened early this year in Colorado Springs, Colo., wasn’t included in the original loan.

The resorts, generally with 300-600 guest rooms apiece, are scattered across the country. Great Wolf, based in Madison, Wis., built the first in 1997 in Wisconsin Dells, Wis. Others are in California, Kansas, Massachusetts, Michigan, North Carolina, Ohio (2), Pennsylvania, Texas, Virginia, Washington and Ontario. Additional properties are under development in Georgia and Minnesota.