NEW YORK Millennium Partners has closed on a $400 million loan underwritten by Dresdner Bank Real Estate and DePfa Bank AG for the acquisition of six hotels, (two in operation and four under construction) to be operated by The Ritz-Carlton Hotel Company. The properties are located in three markets: New York, Boston and Washington DC.
The hotels are owned by MPE Hotel I LLC, an investment vehicle capitalized by subsidiaries of two major German insurance companies, Victoria, a subsidiary of ERGO, and Provinzial Lebensversicherungsanstalt de Rheinprovinz, both based in Dusseldorf, Germany, and the principals of Millennium Partners. TMW Immobilien AG of Munich served as investment advisors on this transaction.
The term of the facility is five years with a one-year extension option. The facility covers approximatley 60% of the acquisition costs of the hotel porftolio, the balance of which will be funded by equity capital. The transaction benefits from a $100 million funding guarantee from Marriott International, which was designed to ensure that the hotel portfolio achieves certain minimum levels of cash flow. The loan will be drawn-down over a two-year period as the construction/renovation of each of the hotels is completed. (1/11/01)