NEW YORK—Square Mile Capital Management LLC has originated a $70-million loan secured by the Hyatt Regency Denver Tech Center.
The loan was made to Columbia Sussex Corporation, an investment firm that acquired the asset from JMI Realty. At closing, Square Mile brought Natixis in to acquire the $52.5-million senior mortgage component of the debt.
The 12-story, full-service hotel is located in Technological Center submarket of Southeast Denver, which is home to approximately 11-million sq. ft. of office space and approximately 1,000 companies encompassing the technology, media, communications, financial services and engineering industries.
The hotel has 451 rooms, including 12 suites, 29,600 sq. ft. of function space, a 533-space parking garage, the Root25 Taphouse & Kitchen, Perks coffee shop, Hyatt StayFit fitness center and an indoor swimming pool with outdoor sun deck. It has been operated as a Hyatt Regency since construction was completed in 1985. It recently underwent nearly $12.6 million in renovations including a complete transformation of the lobby, upgrades to the common areas and the introduction of a signature restaurant and lounge.
Square Mile Principal Michael Mestel said, “This transaction provides us the opportunity to expand our portfolio in Denver and establish a lending relationship with Columbia Sussex Corporation. As Denver continues to benefit from continued economic growth and favorable demographic trends, the Hyatt Regency Denver Tech Center will be well-positioned to fulfill the increased corporate and leisure demand for hospitality in Southeast Denver.”