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In February 2011, Jones Lang LaSalle’s Hotels & Hospitality Group was engaged to facilitate the sale of a non-performing mortgage loan and three related mezzanine loans (the “Loans”) secured by the fee simple interest in 64 Red Roof Inns and the leasehold interest in one hotel on behalf of an undisclosed seller.
The outstanding loan balance was $239.1 million or $31,400 per key. The proposed settlement agreement provided for deeds-in-escrow with respect to the Portfolio, expected to be finalized before closing.
This transaction attracted significant investor interest given the properties’ strong track record and the well-recognized brand affiliation. The team commenced its marketing efforts to sell the Loans in late 1Q 2011, marketing to a wide range of client-approved investors, including opportunity funds/private equity, institutional and owner operators.
After an extensive marketing campaign, Jones Lang LaSalle called for offers in May. The winning bid was submitted by Five Mile Capital, an investment management firm specializing in real estate, debt products, asset-based lending and financial services private equity.
The Loan was closed within three months of executing the letter of intent. The transaction demonstrated Jones Lang LaSalle's ability to pinpoint the highest investor prospect in the market and close in a timely fashion.
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