Posts Tagged ‘St. Regis Atlanta’

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St. Regis obtains new financing

July 29, 2010
Jenny Pruitt, CEO and Founder

Jenny Pruitt, CEO and Founder

From Atlanta Business Chronicle

 The developers of the St. Regis Atlanta have obtained new financing from blue chip investment bank Morgan Stanley, a rare sign of confidence in Atlanta’s commercial real estate market.

 The deal replaces $176.5 million in financing from Morgan Stanley Mortgage Capital Holdings. The loan was originated in October 2006 to develop the St. Regis Atlanta, the 16th hotel for the historic chain, which was founded by John Jacob Astor in New York City.

The debt that financed the construction of the St. Regis Atlanta would have come due in October, according to Databank Inc., a firm that tracks real estate transactions in Atlanta.

 The development team behind the St. Regis declined to discuss the Morgan Stanley deal, but partner Kent Levenson said the original debt secured by the 26-story building involved “extremely complex financial structures.”

 The new financing involves an undisclosed investment of new equity into the St. Regis, which includes 53 high-end homes and 151 hotel rooms overlooking West Paces Ferry Road, near the intersection with Peachtree Road.

 The deal was struck despite deep problems facing the country’s luxury residential and hotel sectors amid a slow recovery from the Great Recession.

 Developers have seen real estate prices collapse since the peak, putting their buildings under water. At the same time, much of that financing is coming due amid a much stricter lending climate, forcing borrowers to put significant equity into their projects to refinance, or risk seeing those properties go back to the banks.

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