Knighthead Funding, LLC Originates $36 Million Loan to Refinance Newly Constructed Luxury Hotel at Hartsfield-Jackson Airport in Atlanta
January 28, 2019 1:51pm
Greenwich, CT (January 28, 2019) – Knighthead Funding, LLC has provided a U.S. subsidiary of Switzerland-based private real estate investment firm ACRON with $36 million in short-term first mortgage debt to refinance a newly constructed luxury destination hotel at the Hartsfield-Jackson Atlanta International Airport.
The financing is secured by the Kimpton Overland Hotel, formerly Solis Two Porsche Drive, a full-service, 214-key hotel with 9,500 square feet of meeting space, a high-end restaurant, rooftop and lobby lounges, indoor pool, and fitness center. Proceeds from the three-year, fixed rate loan will be used to take out the existing construction loan and provide working capital for the continued stabilization of the ACRON-developed hotel, which opened in November 2017.
The hotel benefits from numerous demand drivers, including the current $6 billion-dollar expansion of the Hartsfield-Jackson Atlanta International Airport, and Aerotropolis Atlanta a community-derived development plan to drive economic investment, job growth and quality of life around the airport.
Kimpton Overland is adjacent to the $100 million Porsche Cars North America headquarters, the first major development within the 122-acre Aerotropolis Atlanta. Home to 400 employees, the 27-acre Porsche facility includes an industry-first customer experience center with a 1.6-mile test track and road course. The Atlanta Porsche facility has attracted more than 150,000 visitors in its first year of operation. The common areas and many of the rooms at Kimpton Overland offer views of both the airport runways and the Porsche test track.
“In addition to helping replace the 1,000 hotel rooms that will be lost over the next five years as a result of the airport’s expansion, the supportive nature of the development in the immediate area will contribute to the overall success of the stabilization of the asset,” said Knighthead Funding East Coast Originator, Brian Sullivan, who originated the financing.
kimpton overland hotel
Knighthead Funding, LLC is a national real estate finance company specializing in short term-bridge loans for the acquisition, renovation, construction and refinancing of commercial real estate across all asset classes. Knighthead originates loans for its managed real estate debt funds and Knighthead Annuity & Life Assurance Company. Knighthead Funding is an affiliate of Knighthead Capital Management, LLC, a New York-based SEC registered investment management firm.
Contact: Bruce Beck
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