Tremont Realty Capital Announces the Closing of a $40 Million Mortgage Loan to Refinance a Hotel in Revere, MA
Tremont Realty Capital has closed a $40 million first mortgage loan to refinance the SpringHill Suites by Marriott Boston Logan Airport Revere Beach hotel. The hotel, located at 400 Ocean Avenue in Revere, Massachusetts, features 168 rooms and easy access to downtown Boston via the MBTA Wonderland Station. The loan has an initial term of two years, with three one-year extension options, contingent on the borrower meeting certain criteria. The transaction was facilitated by HREC Investment Advisors, with funding from The RMR Group. According to Tom Lorenzini, Senior VP of Tremont Realty Capital, this deal underscores Tremont's capacity to secure financing in a challenging market and hints at a robust investment pipeline for 2024.
- Closed a $40 million first mortgage loan.
- Loan facilitates refinancing for a 168-room hotel near downtown Boston.
- Initial two-year term with three one-year extension options.
- None.
Insights
The closing of a
Short-term implications: The immediate availability of liquidity will strengthen the financial position of the borrower, enabling them to manage operational costs more effectively and possibly invest in additional improvements to the hotel. For Tremont Realty Capital, successfully closing such a loan reinforces their reputation in a challenging financial environment and may attract more business.
Long-term perspectives: The longer-term outlook depends on the borrower's ability to meet the loan requirements, especially given the incremental extension options. Meeting these conditions will likely be contingent on the hotel's sustained performance, which may be influenced by factors such as tourism trends and economic conditions in the Boston area.
It's also worth noting that the loan terms include three one-year extension options, giving the borrower flexibility. This is beneficial as it accounts for potential market fluctuations and economic uncertainties.
The refinancing deal for SpringHill Suites by Marriott is reflective of broader trends in the hospitality and real estate market. The decision to refinance indicates that the property owners see sustained or increased value in the hotel, which is a positive sign amidst the current economic conditions.
Market Trends: The location near major transport links and a popular urban area enhances the hotel's appeal. The Boston area generally has strong demand for hotel rooms, driven by tourism, business travel and conventions. This demand underpins the rationale for refinancing and is likely to continue supporting the property's valuation.
Competitive Advantage: The hotel’s proximity to both the MBTA Wonderland Station and downtown Boston positions it well against competitors. Additionally, being part of the Marriott brand likely provides a steady stream of customers through loyalty programs and brand recognition.
This refinancing also points to the confidence held by lenders and investors in the hospitality industry's recovery post-pandemic, showcasing a more optimistic outlook for this market segment.
The loan has a two-year initial term with three one-year extension options, subject to the borrower meeting certain requirements. Tremont Realty Capital was introduced to the transaction by HREC Investment Advisors. Funding for the loan was provided by The RMR Group.
Tom Lorenzini, Senior Vice President of Tremont Realty Capital, made the following statement:
“The closing of the SpringHill Suites Revere demonstrates Tremont’s continued ability to meet the financing needs of borrowers in today’s challenging environment. Our investment pipeline remains strong and we continue to see attractive opportunities to originate new loans and further expand our portfolio throughout the remainder of 2024.”
About Tremont Realty Capital
Tremont Realty Capital is the commercial real estate finance division of The RMR Group (Nasdaq: RMR). Tremont is a direct lender that originates and invests in loans secured by middle market and transitional commercial real estate on behalf of its capital sources, including Seven Hills Realty Trust (Nasdaq: SEVN). For more information about Tremont, please visit www.tremontcapital.com.
NMLS #1752106
Arizona Commercial Mortgage Banker License #CBK-0949402
California Finance Lender License #60DBO-80218
View source version on businesswire.com: https://www.businesswire.com/news/home/20240707746946/en/
Christopher Ranjitkar, Vice President,
Marketing & Corporate Communications
(617) 219-1473
Source: Tremont Realty Capital
FAQ
What hotel did Tremont Realty Capital refinance with a $40 million loan?
Where is the SpringHill Suites by Marriott Boston Logan Airport Revere Beach hotel located?
What is the initial term of the $40 million mortgage loan closed by Tremont Realty Capital?
Who facilitated the transaction for the $40 million mortgage loan closed by Tremont Realty Capital?
