KSL taps CMBS to financial Margaritaville review mortgage

KSL Capital Partners is sponsoring a $161.5 million blurb mortgage-backed securitization for a Margaritaville Hollywood Beach Resort, a oppulance Florida review raid by squabbling between a city and a strange developers.

The Denver-based private equity firm’s deal, dubbed Margaritaville Beach Resort Trust 2019-MARG, will embody a $49.3 million cash-out equity interest for KSL, or about one-fourth of a strange debt stemming from a Apr 2018 merger of a Jimmy Buffett-themed hotel located on a 2.5-mile boardwalk in Hollywood Beach.

The single-loan, single-borrower transaction includes a Class A senior-note charity of usually $49.9 million, or reduction than half a distance of a total subordinate tranches ($99.1 million) and $12.5 million in plane risk-retention stakes, according to a Fitch Ratings presale news published Monday.

Fitch has reserved an approaching AAA rating to a Class A notes, along with investment category ratings of AA- for a $11 million in Class B notes, A- for a $7.9 million Class C tranche and BBB- for a $12.2 million in Class D notes. Fitch is not rating a Class E records ($30 million), a Class F records ($23 million), nor a $$15 million in Class G bonds.

Margaritaville Hollywood Beach Resort

Fitch also reserved BBB ratings to $81 million in dual category of interest-only notes.

The transaction will be cumulative by a leasehold interests in a singular two-year, floating-rate interest-only debt loan released by JPMorgan Chase. The loan includes 3 discretionary one-year extensions. JPMorgan is a lead manager and bookrunner for a CMBS deal, with Deutsche Bank portion as co-manager.

Although recently built, in 2015, a 17-story hotel will bear $1.8 million in restoration financing that will supplement 20 additional bedrooms to a existent 349-room count. Those renovations engage reconfiguring a combined space from dual vast oppulance apartment offerings, including centerpiece Jimmy Buffett Suite. (Another apartment will be renamed for a musician, whose 1977 strike strain is a impulse for a hotel’s name.)

Fitch records that skill has had improving income given opening 4 years ago. The four-diamond rated skill (by AAA) had a trailing 12-month revenue-per-average-room (RevPAR) nightly rate of $232.03 as of Mar 2019, compared to $196.45 RevPAR for 6 competing full-service oppulance hotels in Hollywood and Fort Lauderdale.

Fitch estimates a debt use coverage ratio of 0.81% and an LTV of 129.5% for a mortgage, not including $18.5 million in passageway financing hold outward a trust.

“The review has benefited from new government and doing of cost assets initiatives following a sponsor’s 2018 merger of a property,” Fitch’s news stated.

KSL Capital Partners acquired a review in Apr 2018 for $194 million from a corner try helmed by internal genuine estate developer Lon Tabatchnick (the Lojeta Group) and Starwood Capital Group of Greenwich, Conn.

The sale became quarrelsome final year, as a city of Hollywood claimed a strange developers due a municipality $1.71 million from a deduction of a KSL sale, as partial of a profit-sharing agreement on a sale of a resort. (The hotel land skill is owned by a city, that binds a 99-year franchise agreement with Margaritaville Hollywood Beach Resort.)

Last November, Tabatchnick filed a lawsuit opposite a city’s claim, saying a skill sale resulted in no distinction for a corner try between Tabatchnick and Starwood, according to published reports.

Article source: http://www.nationalmortgagenews.com/news/ksl-taps-cmbs-to-finance-margaritaville-resort-mortgage

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