Barings has originated a $303 million debt package in partnership with Aareal Capital Corporation to an affiliate of AJ Capital Partners. The debt package will refinance seven Graduate by Hilton properties — a portfolio of seven full service, upperscale hotels totaling 1,340 keys in university-anchored markets across the country. The loan was structured with mezzanine and senior mortgage components. Barings funded the mezzanine component of the loan, with Aareal Capital Corporation originating the senior portion.
“We are excited to partner with both Aareal and AJ Capital Partners, a best-in-class hospitality investor, to support the growth of this high-quality and geographically diverse portfolio located in prime university markets across the country,” Barings Managing Director Ryan Naumes said in a statement. “With close proximity to vibrant campus communities and local amenities, we believe these properties are positioned for strong performance and long-term value creation.”
Each hotel is situated within approximately one mile of a major university and is surrounded by shopping, dining, and entertainment options. The properties incorporate design elements inspired by their local surroundings and offer amenities including meeting spaces and on-site food and beverage options.
CBRE advised the sponsorship on the financing.