Oaktree Capital Management and Clearview Hotel Capital have secured $229 million in commercial mortgage-backed securities (CMBS) debt to refinance their joint venture Washington Hilton property, as first reported by Commercial Observer.
Morgan Stanley (MS) closed on a CMBS single-asset single-borrower (SASB) loan on Friday to sponsor a 12-story, 1,107-room hotel in Washington, DC's Dupont Circle neighborhood.
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CBRE’s Tom Traynor, Tom Lugg and Lawrence Britvan handled the transaction.
The new financing for the Washington Hilton comes four and a half years after Oaktree and Clearview received a $225 million floating-rate refinancing loan from Barclays in November 2019.
Sponsorship acquired the hotel at 1919 Connecticut Avenue from a joint venture between Rowe Enterprise Investors and Canyon Johnson Urban Fund in 2016 for roughly $315 million, Grove Street reported at the time.
The hotel was built in 1965. Shortly after purchasing the property in 2017, the new owners added 10,000 square feet of meeting space and 37 guest rooms, CO previously reported.
This iconic hotel hosted some of the biggest names in music throughout the 1960s and 1970s, including The Doors and Jimi Hendrix, and historically, it was the site of the 1981 assassination attempt on President Ronald Reagan by John Hinckley Jr. as he was exiting the T Street Northwest exit.
Representatives for Oaktree, Clearview and CBRE did not immediately respond to requests for comment. Morgan Stanley declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com