Savills has advised DekaBank Deutsche Girozentrale on the sale of its senior mezzanine loan on the W Hotel at Union Square in New York. The hotel was acquired by Host Hotels & Resorts, LP.
The transaction was the result of the owner, a Middle Eastern investor, defaulting on its loan. Savills led restructuring negotiations for DekaBank by providing analysis and guidance relating to all real estate, operational and inter-creditor matters, and the marketing of the bank's mezzanine loan as part of conducting a UCC foreclosure auction.
DekaBank was able to realize 100% recovery of its loan, achieving a price per room equating to the highest this year for an operating hotel in New York.
"This was a highly successful outcome for DekaBank," said John Wilcox, Managing Director of Savills New York. "Our engagement with DekaBank is similar to many of our assignments over the past year in which our clients benefited from Savills' multi-disciplinary team of in-house financial and restructuring advisors and real estate specialists."
John. D Lyons, CEO of Savills New York, adds: "Given the nature of the client, taking control of a management intensive asset was not a priority. After three years' turmoil in the hotel industry and with values severely damaged, this result is a great achievement."