W Hotel, Atlanta, GA
ABOUT
W Hotel, Atlanta, GA
Linden Lane Structured Capital (LLSC) purchased at a discount a $15.0 mezzanine loan (last dollar – 66% of cost) on an existing 237-key hotel. The loan was repaid in full in less than 2 years. The face yield on the note was a single digit yield. Due to the discount and quick payoff, investors received a mid-teens yield. LLSC’s deep relationships with major commercial bank trading desks, hotel experience and ability to close quickly provided a significant competitive edge.
Situation
Discounted “B” piece note purchase from a major hedge fund looking to reduce their fixed income exposure.
Strategy
Allow the hotel cashflow to stabilize and exit at a par price
Investment paid off in 18 months with a deal level IRR of 21%.
GALLERY
Some Pictures
