184-Key Full-Service Hotel
Palo Alto, CA
Highland Realty Capital has arranged an $83mm permanent loan for The Westin Palo Alto, a 184-key trophy hotel in the heart of downtown Palo Alto, CA. The proceeds were used to refinance existing debt and to provide significant capital for reinvestment into the asset and for other Sponsor investment activities. The financing request generated strong interest from a wide variety of lenders, including life companies, CMBS providers, and pension funds. Given the superb location, being just across El Camino Real from Stanford University, the historical performance of the hotel, and the impeccable track record of the Sponsor, ultimately CMBS money was the most competitive. In a very uncertain and volatile capital market environment, especially on the CMBS side, Highland was able to negotiate a low debt yield requirement, maximum proceeds, a cap on legal costs, and an extremely competitive rate and term structure.