JLL Arranges $430 Million Refinancing for Fairmont Austin

JLL’s Capital Markets group has announced the successful arrangement of a $430 million refinancing for the Fairmont Austin, a luxurious 37-story hotel located in the heart of downtown Austin. Representing Manchester Financial Group, JLL Capital Markets secured a five-year, interest-only, fixed-rate SASB CMBS loan, with Goldman Sachs serving as the lead manager and sole bookrunner. This comprehensive financing package effectively replaced a previous $300 million senior loan and $125 million of mezzanine debt.

Developed by Manchester Financial Group, Fairmont Austin boasts an impressive 1.4 million square feet of space, making it the city’s fifth-tallest building. Since opening its doors in 2018, the luxury hotel has become a renowned destination, offering 1,048 guestrooms and suites, an expansive 140,000 square feet of meeting space, a full-service spa, five meticulously curated food and beverage outlets, and an inviting outdoor resort-style pool deck on the 7th floor. Furthermore, the hotel features a grand pedestrian walkway that provides direct access to the Austin Convention Center.

Strategically located at 101 Red River St., Fairmont Austin enjoys a prime position within walking distance to Austin’s most sought-after lifestyle and entertainment areas. These include Rainey Street, East Austin, and a mere two blocks from Lady Bird Lake.

Papa Doug Manchester, representing Manchester Financial Group, expressed his enthusiasm about the financing, stating, “This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100% ownership of the hotel. The funds will support the continued growth and enhancement of this premier property, ensuring it remains a top destination for visitors to Austin.”

JLL Capital Markets’ Debt Advisory team, led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole, and Director Olga Walsh, played a pivotal role in securing this landmark refinancing. Tim Wright highlighted the hotel’s strategic positioning, emphasizing, “With an influx of recently completed and ongoing construction projects in the immediate area, Fairmont Austin is well-positioned to benefit from the momentum in all directions and capitalize on its position as the epicenter of Austin’s explosive growth.”

Olga Walsh underscored the competitive landscape and the favorable outcomes for the client, noting, “Despite today’s challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group. This led to a competitive marketing process and, in the end, beneficial and highly tailored terms for our client.”

JLL Capital Markets stands as a leading global provider of comprehensive capital solutions for real estate investors and occupiers. With deep local market expertise and global investor knowledge, the firm consistently delivers best-in-class solutions for clients across investment sales and advisory, debt advisory, equity advisory, and recapitalization. JLL Capital Markets boasts a team of over 3,000 specialists worldwide, with offices strategically located in nearly 50 countries.

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