Tishman Hotels completes $600M in transactions

Real Estate Weekly, Oct 22, 1997

Most notable among these transactions were the $115 million sale of a note secured by the Westin Peachtree Plaza, the 1,068-room landmark hotel in downtown Atlanta where Tishman represented the seller exclusively, a five-member Japanese Bank Group led by The Mitsubishi Trust and Banking Corporation's New York Branch, in the sale of the note to Westin Hotels & Resort.

Tishman also handled the $265 million refinancing of the Wait Disney World Dolphin & Swan Hotels in Orlando, Florida with Merrill Lynch Mortgage Capital. This is one of the largest hotel financings completed in recent years.

Tishman also represented the seller, Skopbank, in arranging the sale of the Great Cruz Bay Resort and Virgin Grand Villas in St. John, Virgin Islands (formerly the Hyatt Regency St. John) for $40.5 million to Westin Hotels & Resorts and Signature Resorts, Inc.

Locally, Tishman represented Dream Team Associates LLC in the $49.7 million construction and term financing of E Walk, a 200,000 square-foot New York City urban entertainment/retail development anchored by 13 Sony/Loews theaters. The loan was provided by Westdeutsche Landesbank and Kredietbank. Additionally, Tishman arranged the equity financing provided by Equitable Real Estate Investment Management's Compass Retail Group, in conjunction with The Margolick Financial Group.

E Walk is the first phase of a $320 million hotel/retail/entertainment development on 42nd Street in Times Square.

"As indicative of these high-profile transactions, four-star, world-class hotels are generating significant interest from investors and lenders, with high-quality hotel assets trading quickly at top dollar prices," said Timothy Haskin, senior vice president and managing director of Tishman Hotel Corporation. "However, there is certainly an equal amount of transaction activity among other segments."

In that regard, Tishman has played roles in these following transactions:

Represented Wolff DiNapoli LLC (seller) exclusively in the $19.3 million sale of the 289-room Holiday Inn La Mirada, California, to Sunstone Hotel Investors, L.P.;

Exclusively represented Bucks County Hospitality, Inc. (the seller), in arranging the sale of the 215-room Holiday Inn Select Bucks County in Trevose, PA, to American General Hospitality Corporation;

Exclusively represented the buyer, managing partner and borrower in arranging the $24 million acquisition of the 189-room Quality Hotel in New York. The transaction included arranging joint-venture equity financing from institutional partners and LIBOR-based first mortgage interim financing from CS First Boston Mortgage Capital LLC;

Exclusively represented Fountain Park Partners in arranging the acquisition financing provided by CS First Boston Mortgage Capital LLC for the purchase of the 400-room Fountain Park Hotel in Kissimmee, FL;

Exclusively represented Pleasantwood Limited Partnership (seller), a joint-venture of Westonlake Corporation and a European investment bank, in the sale of the 170-room DoubleTree Club Hotel in Lakewood, Colorado, to Friden Hotel Company for conversion to a Four Points Hotel;

Represented Miami Bay Hospitality Partners, L.P., in obtaining LIBOR-based first mortgage financing for the acquisition and renovation of the Occidental Plaza Hotel in downtown Miami, FL;

Represented Northern Springs, L.P., a joint-venture of Altamonte Investments, Inc. and Northern Springs Portfolio, Inc. in arranging the refinancing of The Courts at Lakeside in Altamonte Springs, FL for conversion to an extended stay hotel;

Represented Baldwin Hospitality, LLC in acquiring the Marriott San Gabriel Valley Hotel in Baldwin Park, CA and arranged LIBOR-based interim financing for the acquisition from a major Wall Street firm.