Latest news: Big CMBS comeback; high-profile US refis; Rockbridge buys 3 ZaZas

Big comeback for CMBS. Commercial mortgage-backed securities (CMBS) issuance in 2024 has reached its highest levels since 2021. Moody’s Ratings released a December 2024 outlook that found CMBS issuance would surpass $100 billion by the end of 2024, compared to only $42 billion in CMBS issuance in all of 2023. The single-asset, single-borrower (SASB) market has contributed $67 billion in issuance alone.

Driftwood refinances two for $62.5M. Miami-based Driftwood Capital has secured $62.5 million in refinance loans for the Wylie Hotel Atlanta and Sheraton Pittsburgh Hotel at Station Square. Funds managed by affiliates of Fortress Investment Group have provided a 36-month, $28.5 million loan at a competitive interest rate to refinance the Wylie Hotel Atlanta. Driftwood acquired the hotel in 2021 and rebranded it into a Tapestry by Hilton in 2023. Starwood Mortgage Capital and Greystone Commercial Mortgage Capital have provided a five-year, $34 million CMBS loan for the Sheraton Pittsburgh Hotel at Station Square. Driftwood acquired the hotel during COVID and the property had $10 million in renovations.

Concord, Panora refinance in NYC. A joint venture between Raleigh, North Carolina-based Concord Hospitality and Charlotte-based Panorama Holdings has secured a $49.5 million loan to refinance the Courtyard by Marriott New York World Trade Center Area in New York City, according to the Commercial Observer. New York Life provided the loan and New York City-based Arrow Real Estate Advisors arranged the transaction. Concord acquired the hotel in 2021 for $69 million when it was a Marriott Fairfield Inn & Suites.

Refinance in Colorado. Atlanta-based High Street Real Estate Partners, Zurich-based ACRON Group and Dallas-based RGP Partners have secured a $99 million refinance loan for the 254-key Viewline Resort and 158-key Wildwood Hotel in Snowmass, Colorado. The loan was provided by an affiliate managed by Range Equity Management, Lodging Capital Partners and funds managed by Oaktree Capital Management.

Make way for a new Mandarin in Miami. The Mandarin Oriental on Brickell Key will close May 31, 2025, to make way for new resort and condo towers, which are expected to reopen in 2030. The Mandarin Oriental, Miami and The Residences at Mandarin Oriental will have a south tower with 228 residences and the north tower with 66 residences. The new complex will also include a new Mandarin Oriental hotel, with 121 guest rooms and 34 suites, 28 hotel residences, a spa and several restaurants.

Waterwalk sells in Arizona. Wichita, Kansas-based WaterWalk has sold the 126-key WaterWalk Phoenix North Happy Valley in Arizona to Kennewick, Washington-based Ignite Hotels for an undisclosed amount. This is WaterWalk Holding Co.’s first asset sale. The upscale extended-stay brand announced a strategic partnership with Wyndham Hotels & Resorts in April to become Wyndham’s 25th brand.

Rockbridge acquires 3 in Texas. Columbus, Ohio-based Rockbridge has acquired three Hotel ZaZa properties in Texas from an undisclosed seller for an undisclosed amount. The hotels include the 159-key Hotel ZaZa Austin Downtown, the 166-key Hotel ZaZa Dallas Uptown and the 315-key Hotel ZaZa Houston Museum District.

Sage adds in Denver. Tysons, Virginia-based REIT Park Hotels & Resorts has selected Denver-based Sage Hospitality Group to manage the 613-key Hilton Denver City Center. This is the first partnership for the two companies and will be the 18th hotel in Sage’s portfolio.

San Francisco strike update. Striking hotel workers at Marriott hotels in San Francisco have reached a tentative agreement for a new contract, the union said. The union said that members of the Unite Here Local 2 union will vote on whether to ratify the tentative agreement. The tentative agreement was reached Wednesday night, according to the union, following five days of negotiations. If the contract is ratified, strikes will end at the Palace Hotel, the San Francisco Marriott Marquis, San Francisco Marriott Union Square and the Westin St. Francis on Powell Street.

Prima partners to grow in London. Singapore-based Prima Asset Management has partnered with Australia’s largest private hotel investor, Schwartz Family Co., to accelerate its real estate expansion in London. The Schwartz Family Co., headed by Dr. Jerry Schwartz, will serve as a key investor in Prima’s London Paddington hotel redevelopment project and possibly other future ventures. This strategic collaboration marks a significant step in Prima’s UK expansion.

Atom sells in Spain. Madrid-based real estate trust Atom has sold the 409-key Hotel Labranda Costa Adeje in Tenerlife, Spain to a long-established Canarian family group in Tenerlife for an undisclosed amount. Atom acquired the hotel in 2019 and the property underwent extensive renovations and was repositioned in the upper 4-star segment.