Portman Holdings has closed a $41.9 million loan to refinance an Atlanta hotel that was formerly a condominium, Commercial Observer has learned.
Peachtree Group provided the loan for Portman’s 217-room Kimpton Sylvan Hotel in the Buckhead neighborhood of Atlanta. The loan, which has a term of 36 months with two extension options of 12 months each, will replace the acquisition loan of Fifth Third Bank Acquisition of the individual condominiums in 2018 and conversion of the property into a hotel in 2021
JLL (JLL)‘S CJ Kelly arranged the transaction.
Jared SchlosserSenior Vice President of the Peachtree Group, said the loan comes at a good time, as Portman’s previous debt is coming due soon and the hotel is now in a much better position than when it opened in early 2021, a year after the COVID-19 pandemic began. He noted that in addition to the increase in business travel in Atlanta, the Buckhead area is also seeing an uptick in new development that will benefit the hotel.
“They have really strong sponsors here and one of the most recognizable names in Atlanta in Portman, and I think they have the right team now to really take this to the next level,” Schlosser said. “They have a restaurant downstairs and a rooftop bar upstairs that they can get up and running, and there’s a lot of development going on around them — which should benefit the restaurant over the next few years as those projects come online.”
Location 374 East Paces Ferry Road Northeast adjacent to Shops in Buckhead VillageThe hotel features amenities such as a pool, fitness center and meeting room. The property was originally built as an apartment building in the early 1950s and later converted into 100 condominiums.
Representatives for Portman Holdings did not immediately respond to a request for comment.
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