Canyon Capital and Aareal Bank AG Finance $47 Million Purchase of D.C.'s St. Regis Hotel by Brickman-New Valley Venture.WASHINGTON -- The recent $47 million purchase of Washington's historic St. Regis Hotel by a joint venture between Brickman Associates and New Valley Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :NVAL NVAL Not Available ) was financed by loans from Canyon Capital Realty Advisors of Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Calif. and Aareal Bank AG of Wiesbaden, Germany. Canyon provided a $5 million mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). to help complete the purchase of the 193-room luxury hotel from Starwood Hotels & Resorts Worldwide, Inc. (NYSE NYSE See: New York Stock Exchange :HOT), and will lend $10 million toward the renovation of the Italian Renaissance-style building. Aareal Bank AG, a leading international property bank, also facilitated the purchase with a $35 million senior loan. Starwood's St. Regis Hotels & Resorts will continue managing the hotel. Since opening three blocks from the White House in 1926, the hotel has hosted presidents, royalty and other international dignitaries. It is listed on the National Register of Historic Places This article is about the U.S. Register. For the National Register of Historic Places in Canada see Canadian Register of Historic Places. The National Register of Historic Places . The St. Regis's new owner, 16th & K Hotel LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , is a joint venture between Brickman Associates and New Valley Corporation. Brickman, based in Manhattan, is a real estate operating and investment company that owns hospitality, office and residential properties throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . New Valley, with headquarters in Miami, is currently engaged in the real estate business and is seeking to acquire additional operating companies and real estate properties. New Valley has a 50% ownership interest in Douglas Elliman Realty LLC, which operates the largest residential real estate brokerage company in the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. area. "Canyon is pleased to be providing capital in our nation's capital," Canyon Managing Partner Bobby Turner said. "The St. Regis Hotel is a prestigious addition to the new owners' portfolios. Its prime location near the White House and convention center already makes the St. Regis attractive to visitors, and the planned renovations will make it an even better place to stay and entertain." In the last 18 months, Canyon and Brickman have worked together on transactions totaling approximately $200 million. For Brickman and New Valley, Canyon also financed the renovation and repositioning of the former Kona Surf Hotel in Kailua-Kona, Hawaii into the Sheraton Keauhou Bay Resort. The oceanfront resort opened in 2004. "Through our dealings with Canyon on several transactions now, we've learned they're the team you want helping you finance complicated, fast-moving deals," said Roderick O'Connor of Brickman Associates. Added Canyon Principal Jonathan Roth, "Good relationships and strong networks helped make this deal possible. The St. Regis in Washington is in great hands." Canyon Capital Realty Advisors and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Beverly Hills, Calif., with more than $9 billion of capital under management. Canyon's real estate activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints. Canyon has built its reputation on creative underwriting and structuring, reliable commitments, overall professionalism and timely closings. Canyon's real estate funds include the Canyon Value Mortgage Fund and the Canyon-Johnson Urban Funds, a joint venture with Earvin "Magic" Johnson focused on the development of retail and residential properties in densely populated, ethnically diverse communities. Aareal Bank AG is one of the leading international property banks listed in Deutsche Borse's MDAX MDAX Mid Cap Dax (German stock index) index. Aareal is active in three core business units: structured property financing, consulting/services and property asset management. The bank has a presence in 13 European countries, in the U.S. and in Singapore, and provides property financing solutions in a total of 22 countries. Aareal's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of office managed the St. Regis transaction and Eastdil Realty served as a loan broker. |
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