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Nine-state hotel portfolio backs $245.1M large-loan CMBS

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A New York-based real estate investment firm is financing its acquisition of a portfolio of nationally branded hotels via the commercial mortgage securitization market.

Dune Real Estate Partners is sponsoring a transaction via Goldman Sachs featuring $245.1 million in first-lien mortgage-backed notes collateralized by a newly purchased portfolio of 17 hotels. Dune is headed by former Goldman executive Daniel Neidich.

The loan backing the deal is a two-year, $258 million floating-rate loan with three one-year options. The loan is interest-only, and has a floating rate coupon of 2.45% plus Libor.

The hotels in the portfolio are a mix of full-service, limited service and extended-stay properties carrying brand names associated with Marriott, Hilton and IGH, with a total of 2,086 guest rooms, according to a presale report from Moody’s Investors Service.

Dune Real Estate Partners purchased the hotels for $336.7 million, a price that includes $110.6 million of equity from the firm.

The loan was made by Goldman, which sold the loan into the trust.

The SEC rule 144A transaction features 14 classes of certificates, including a Class A tranche of 87.4 million with a preliminary Aaa rating from Moody’s. The capital stack includes a mix of interest-only and exchangeable notes along with notes that pay principal and interest.

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CMBS Goldman Sachs