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CMA
December 08, 2017  

Walton Street Seeks $345 Million Hotel Loan

Walton Street Capital is aiming to line up a $345 million floating-rate loan on four full-service hotels.

The Chicago fund operator bought the properties in separate transactions from different sellers in 2014 and 2015. They are in downtown areas of Nashville, New Orleans, Philadelphia and St. Louis, and together have 1,827 rooms.

Walton Street now wants a single mortgage backed by all four properties, with a two- or three-year term and options to extend it to five years. The leverage would be about 80%. Eastdil Secured is shopping the assignment to lenders.

The largest of the hotels is the 917-room Marriott St. Louis Grand, at 800 Washington Avenue in downtown St. Louis. It’s adjacent to the America’s Center Convention Center and several blocks from the Gateway Arch. Walton Street and operating partner Haberhill, of Potomac, Md., acquired the hotel in 2014 from bondholders that had foreclosed in 2009 on what was then called the Renaissance St. Louis Grand Hotel. The duo paid about $26 million and spent another $30 million on renovations. The 23-story property has 55,000 square feet of meeting space and three restaurants.

The 367-room DoubleTree by Hilton New Orleans is at 300 Canal Street, just outside the French Quarter. Walton Street bought it in 2015 for $85.3 million and conducted a $25 million renovation. The property includes 16,000 sf of flexible meeting and event space and a pool.

The DoubleTree by Hilton Nashville Downtown has 341 rooms. Walton Street purchased it from an AEW Capital partnership in 2014 for $74.4 million. The 11-story hotel is at 315 Fourth Avenue North, a few blocks from the state capitol and the Musicians’ Hall of Fame. It has 20,000 sf of flexible meeting space, business and fitness centers, an indoor pool, a bar, a lounge and ground-floor retail space.

The fourth hotel is the 202-room Le Meridien Philadelphia, at 1421 Arch Street in the City Center district, near several universities. Walton and its operating partner, HEI Hotels & Resorts, bought it in 2015 for $58 million. It has fitness and business centers and 5,000 sf of flexible meeting space.