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HFF announces $51M refinancing for Ace Hotel New Orleans

01/09/2018

NEW YORK, NY – January 9, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $51 million refinancing for Ace Hotel New Orleans, a 234-room, recently opened, award-winning Ace-branded hotel in New Orleans, Louisiana.

The HFF team worked on behalf of the borrower, a partnership between Domain Companies and Avenue Capital Group, to place the floating-rate loan with TPG RE Finance Trust.  Loan proceeds will be used to refinance the construction financing.

Ace Hotel New Orleans is located at 600 Carondelet Street in downtown New Orleans at the nexus of the city’s central business, warehouse and sports/entertainment districts.  The Mercedes-Benz Superdome, Smoothie King Arena, Ernest N. Morial Convention Center and French Quarter are all within walking distance from the hotel.  Originally constructed in 1928, the building was renovated and redeveloped into the Ace Hotel New Orleans and included the construction of a new four-story building on an adjacent lot.  The hotel, which opened in 2016, features 31,000 square feet of retail, restaurant, entertainment and meeting space that houses a music venue, art gallery, multiple food and beverage options and four locally-inspired boutique retail outlets along with a 24-hour gym.  Since opening, the hotel has received numerous distinctions, including being named to Condé Nast Traveler’s “Best New Hotels in the World” and USA Today’s “10 Best New Hotels” lists and receiving the Downtown Development District’s Downtown NOLA Award.

HFF’s debt placement team included managing director Christopher Peck, senior director Peter Rotchford and associate Scott Findlay.

“The Ace Hotel New Orleans is a unique, best-in-class asset, which has carved its own niche within the New Orleans hospitality market and local community,” Peck said.  “It was a pleasure working with TPG, a lender who immediately recognized the hotel’s merit and Domain’s unparalleled market expertise.”

About Domain Companies
The Domain Companies is one of the nation’s leading development and real estate investment companies specializing in sustainable mixed-use development.  Since the company’s founding in 2004, it has been involved in the development of over $1 billion in impactful mixed-use real estate involving a diverse range of product types and markets.  The unique skills and experience of the company’s people and the driven, entrepreneurial, spirit of the organization have allowed it to develop innovative solutions for the most challenging projects, creating properties that stand apart through innovative design and extraordinary management.  The result is the creation of more than exceptional properties – it is the evolution and enhancement of the communities in which the Domain Companies builds.  Visit thedomaincos.com for more information.

About Avenue Capital Group
Avenue Capital Group is a global investment firm that was founded in 1995 by its senior principals, Marc Lasry and Sonia Gardner.  The firm's primary focus is investing in distressed debt and other special situations investments in the United States, Europe and Asia.  Avenue initiated its real estate strategy in October 2004 and has invested approximately $325 million involving twenty-six separate transactions that have a combined capitalization of over $2.4 billion.  For more information, visit avenuecapital.com.

About TPG RE Finance Trust
TPG RE Finance Trust, Inc. (NYSE: TRTX) is a commercial real estate finance company that focuses primarily on originating, acquiring, and managing first mortgage loans and other commercial real estate related debt instruments secured by high quality institutional properties located in primary and select secondary markets in the United States.  TRTX is externally managed by TPG RE Finance Trust Management, L.P., a part of TPG Real Estate, which is the real estate investment platform of TPG Global, LLC (“TPG”).  TPG is a leading global alternative investment firm with a 25-year history and approximately $73 billion of assets under management.  For more information regarding TRTX, visit tpgrefinance.com.

About HFF
HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry.  HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing.  HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF).  For more information, please visit hfflp.com or follow HFF on Twitter @HFF

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