LOS ANGELES—In separate transactions Mesa West Capital has funded two loans totaling $84 million in non-recourse first mortgage debt for the acquisition of the Hyatt Regency Denver Tech Center in Denver, Colo., and the refinancing of the Park Hyatt Beaver Creek near Vail, Colo.
Mesa West provided a joint venture led by JMI Realty with a $42 million loan for the acquisition of the Hyatt Regency Denver Tech Center from Hyatt Hotels Corporation in a transaction valued at approximately $60 million. The hotel will continue to operate under the Hyatt flag under a long-term franchise agreement and will be managed by Davidson Hotels & Resorts.
The Hyatt Regency Denver Tech Center hotel is located in the Denver Tech Center, an 800-acre master planned development along the I-25 Corridor in southeast Denver with more than 32 million square feet of office. The only Four Diamond Hotel in the Denver Tech Center, the 451-room hotel recently underwent a $5 million renovation that included upgrades to the lobby and public spaces, a new restaurant, and a new hi-tech check-in system. With more than 30,000 square-feet of function space, representing 67 square feet of meeting space per room, the hotel has a distinct competitive advantage in the submarket.
“The Hyatt Tech Center is considered the highest quality asset in the submarket and is well-positioned to capitalize on the recovering Tech Center office market which has been posting solid net absorption and a decline in vacancy rates over the past 24 months,” says Mesa West Principal Ronnie Gul, who originated the financing.
In an unrelated transaction, Mesa West Capital provided Walton Street Capital with a $42 million loan to recapitalize the Park Hyatt Beaver Creek Resort and Spa near Vail, Colo. Walton Street acquired the Park Hyatt Beaver Creek in 2007 as part of a six-property portfolio that included assets in California, Colorado, and Texas. The new ownership completed a multi-million renovation that included an extensive upgrade of the common areas and hotel amenities. Substantial upgrades to the hotel’s 190 rooms are planned for later this year and will be followed by a planned renovation of approximately 20,000 square feet of meeting space.
“Ownership is continually improving what is already a world-class property in the internationally recognized leisure market of Vail, CO,” said Gul who originated the financing. “The resort is benefiting from an improving economy, both locally and nationally, supply constraints and an irreplaceable location at the base of Beaver Creek to drive increased occupancy and rate.”
The financing includes approximately 18,000 square feet of high quality retail anchored by Gorsuch, a leading ski apparel retailer.
