Los Angeles-based Mesa West Capital and Boston-based AEW Capital Management provided $145m in loans to JBG Companies for the refinancing of a two-hotel portfolio in Arlington, Virginia.
Mesa West provided a three-year, non-recourse, floating rate, interest-only loan with extension options, carrying a loan-to-value ratio of about 75 percent. AEW originated the mezzanine piece.
The properties have performed well “despite being delivered into a tough environment, and our loan will allow them to continue to improve their performance as the market strengthens,” said Daniel Tanner, AVP of Mesa West Capital.
Washington, DC-based JBG developed both the Marriott properties in 2011: a 300-room, full-service Renaissance Arlington Capital View, and the 325-room, extended-stay Residence Inn Arlington Capital View.
They are situated in the heart of Crystal City, a mixed-use complex in the southeastern part of Arlington county, about a mile away from Reagan National Airport and within driving distance of downtown Washington, DC.
JBG develops, owns and manages office, residential, hotel and retail properties, with more than $10bn in assets under management or under development in the Washington, DC, area.
Mesa West has invested more than $300m in first mortgage debt in the Washington, DC, metro area this year. AEW Capital Management, along with its affiliates, manages $35.7bn of invested capital in properties and securities spanning North America, Europe and Asia.
The firms declined to comment on the individual loan amounts or pricing.