Irish Company Gets $193M for Marriott Buy

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PONTE VEDRA, FL-Ireland-based joint venture company RQB has secured $193 million in financing for the acquisition and development of the 508-key Marriott Sawgrass Resort and Spa.

The interest-only, floating-rate loan was provided by Goldman Sachs Commercial Mortgage LP under its transitional loan program. The term of the loan is five years, including a four-year term with a one-year extension option. The loan includes an initial funding of $154.2 million for acquisition and closing costs, and $38.8 million to be funded over the first three years of the loan to pay for hotel renovations and working capital. RQB is a joint venture development company established in 2004 between Niall McFadden’s Boundary Capital Ltd. and Paddy Kelly’s Redquartz Ltd. Renovations to the hotel will begin immediately and will be completed by the end of the year.

The hotel was sold by Arlington, VA-based Interstate Hotels & Resorts, which owned the property with an affiliate of Cigna Investments Inc. Under the deal, Interstate will continue to manage the property under a long-term contract. Interstate also invested $7 million in the acquisition and $2.3 million in the renovations, and will retain a minority interest in the property, an Interstate spokesman tells GlobeSt.com.

The financing was arranged by Don Williams and Scott Kenney of Charlotte, NC-based Medalist Capital. “Due to the complicated nature of the transaction, now and over the next five years, it was imperative that we find a lender who would be creative and act like a financial partner,” Williams says.

The hotel is located on a 61.33-acre site next to the Tournament Players Club Stadium and Valley golf courses and controls 85% of the tee times at both courses. The Professional Golfers’ Association of America Tour is current building a new clubhouse, which is scheduled to be completed in May 2007 and completing extensive renovations to the stadium course to be completed in November 2006.