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Carey Watermark Reveals Floating Rate Debt For Midtown Hotel Buy
Carey Watermark's Investors 2 fund has revealed details of its August purchase of the Renaissance Atlanta Midtown Hotel.
The company paid $78.8M for the 304-room, full-service, boutique hotel that sits at the corner of West Peachtree Street and Abercrombie Place, according to filings with the Securities and Exchange Commission. In order to snatch the deal, Carey Watermark got two floating-rate loans—one a $34M senior mortgage that floats at Libor plus 3%, and a $13.5M mezzanine loan that has a rate that floats at Libor plus 10%.
Both are subject to interest rate caps, according to SEC documents, and are each interest-only for 36 months, maturing in August 2019.
