The Westin Palo Alto CA

Feb 22, 2019

The Westin Palo Alto

$83,000,000 cash-out, non-recourse permanent loan

184 Key Full-Service Luxury Hotel

Palo Alto, CA

Highland arranged the $83,000,000 cash-out, non-recourse permanent loan for The Westin Palo Alto, a 184 key full-service luxury hotel, a ground-leased asset exceptionally located steps from Downtown Palo Alto.  On behalf of the Sponsor, Highland ran a competitive lender bidding process receiving quotes from over 40 capital sources on the trophy asset.  Ultimately, the winning bid provided maximum leverage sized to 65% LTV ($451,000 per key), a 9.0% debt yield, a 1.40x actual DSCR, 5 years IO, at a 10-year fixed rate priced in the high 3% range.

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