JBG Cos. gets $145 million to refinance two-hotel portfolio in Arlington

Published August 24, 2015 by Paula C. Squires

Mesa West Capital and AEW Capital Management said Monday that they provided the JBG Cos. with $145 million in debt to refinance a two-hotel portfolio in the Potomac Yard neighborhood of Arlington.

Mesa West, a Los Angeles-headquartered portfolio lender, originated the financing at its New York office, providing the first mortgage for the transaction, while Boston-based AEW provided mezzanine debt.  Both loans closed simultaneously.

The JBG Cos., a private real estate investment and development firm in the Washington, D.C., area, developed the 300-room Renaissance Arlington Capital View and 325-suite, extended-stay Residence Inn Arlington Capital View in 2011. 

The properties are connected and share amenities, including the Italian restaurant SOCCi, a health club and heated indoor pool, and more than 20,000 square-feet of combined meeting space.

The hotels are located in Crystal City’s dining and business district and are close to the Potomac Yard development, Reagan National Airport and downtown D.C.

“Since opening, both hotels have performed extremely well against the competition, which is a testament to the quality of the product,” Mesa West Capital Assistant Vice President Daniel Tanner said in a statement. “The properties performed well despite being delivered into a tough environment, and our loan will allow them to continue to improve their performance as the market strengthens.”

Mesa West’s nonrecourse, floating-rate,  interest only loan features an initial term of three years with extension options. 
Since the beginning of the year, Mesa West said it has deployed more than $300 million in first mortgage debt in the Washington, D.C., area.