March 21, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announces that it has arranged a $39.2 million refinancing for the Hilton Lexington Downtown, a 366-room, full-service, Hilton-branded hotel along with the adjacent parking garage in downtown Lexington, Kentucky.
The HFF team worked on behalf of the borrower, a fund affiliated with The Madison Companies, to place the three-year, floating-rate loan with two one-year extensions with a national lender. Loan proceeds will be used to retire an existing CMBS loan and fund both the purchase of the adjacent parking garage and a multi-million-dollar planned property improvement plan, which will include adding three rooms to the hotel and completely renovating guestrooms, the lobby, food and beverage outlets along with upgrades to the meeting space.
The borrower acquired the hotel in 2014 and successfully repositioned the property into the top-performing full-service property it is today. Hilton Lexington Downtown features 20,000 square feet of meeting and event space, an indoor pool and spa, fitness center, business center, almost 4,000 square feet of retail space and two food and beverage outlets. Situated at 369 West Vine Street, the hotel is adjacent to the Lexington Convention Center, Rupp Arena and the recently developed Triangle Park, the city’s central community gathering site that is home to post-game celebrations, Lexington’s Christmas tree, ice skating rink in the winter and outdoor concerts and festivals in the spring and summer. Hilton Lexington Downtown is also within walking distance to restaurants, nightlife, Class A office space, retail outlets and museums along with being one mile from the University of Kentucky and the UK Albert B. Chandler Hospital.
The HFF debt placement team representing the borrower consisted of senior managing director Eric Tupler and associate Tyler Dumon.
“We were fortunate once again to work with Eric Tupler and his team on our portfolio’s debt financing initiatives,” said Seth Wolkov, president of the Madison Companies. “The HFF team was incredibly helpful throughout all phases of this deal. Eric and Tyler made sure the pitch for the loan was aligned with the current market and sourced high-quality bids from top lenders for us to choose from. Once we were in the deal phase with our preferred lender, Eric and Tyler worked tirelessly to help us navigate the most complex pieces of the deal and get it over the finish line. The team really added value throughout the entire process.”