Tarsadia Investments Refinances Anaheim Marriott with $125 Million Loan
Tarsadia Investments, under the leadership of hotelier Tushar Patel, has successfully refinanced the Anaheim Marriott hotel, featuring 1,030 rooms. The firm secured a substantial $125 million loan from Bank of America for the property located at 700 West Convention Way, adjacent to the Anaheim Convention Center. This financing has been integrated into a commercial mortgage-backed securities deal, confirmed by Tarsadia executive Alkesh Patel.
The recent refinancing replaces a previous $110 million debt from JPMorgan Chase Bank, which was also securitized in 2014. Notably, there was an erroneous report suggesting Tarsadia's 90-day delinquency on the old loan, stemming from inaccurate information from Trepp. However, subsequent document reviews verified the successful refinancing.
Key Takeaways
- Tarsadia Investments refinanced Anaheim Marriott hotel with a $125 million loan from Bank of America.
- The loan was packaged into a commercial mortgage-backed securities deal.
- Refinancing replaces previous $110 million debt from JPMorgan Chase Bank.
- Anaheim Marriott achieved 78% occupancy in 2023, with an average daily rate of $216.
- Tarsadia Investments, led by Tushar Patel, also invests in real estate platforms like Yieldstreet.
Analysis
Tarsadia Investments' refinancing of the Anaheim Marriott with a $125 million loan from Bank of America, structured as a commercial mortgage-backed securities deal, alleviates previous financial pressures and capitalizes on the hotel's strong performance. This move enhances Tarsadia's liquidity and investment flexibility, potentially benefiting its broader portfolio, including real estate platforms like Yieldstreet. The refinancing also solidifies the hotel's financial stability, supporting its high occupancy and revenue, which could positively impact the local Anaheim economy through increased business activity and employment. Long-term, this strategic financial maneuver positions Tarsadia to explore further growth opportunities in the hospitality sector and beyond.
Did You Know?
- Commercial Mortgage-Backed Securities (CMBS): A type of mortgage-backed security backed by mortgages on commercial properties, rather than residential real estate. In this case, the $125 million loan for the Anaheim Marriott hotel was folded into a CMBS deal, spreading the risk and providing liquidity in the commercial real estate market.
- Yieldstreet: A platform offering alternative investment opportunities beyond traditional stock and bond markets. It provides investments in areas such as real estate, art, and legal finance, allowing individuals to diversify their investment portfolios. Tarsadia Investments' involvement with Yieldstreet indicates their strategy to diversify into non-traditional real estate investment platforms.
- Trepp: A leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets. In the context of the news article, erroneous information from Trepp initially indicated that Tarsadia was 90 days delinquent on its loan, which was later corrected.