Mission Capital Advisors Arranges $31.5 Million in Acquisition Financing for Graduate Hotel in Berkeley

Bridge loan will allow AJ Capital to reposition 144-key, lifestyle hotel in the heart of UC Berkeley’s main campus

BERKELEY, Calif. — Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Debt & Equity Finance Group arranged $31.5 million in financing on behalf of AJ Capital for the acquisition and repositioning of a hospitality asset in Berkeley, California. With the implementation of capital improvements, AJ Capital will reposition the existing Hotel Durant as a 144-key Graduate Hotel, bringing the university-oriented hotel collection to the heart of UC Berkeley’s main campus.

The Mission Capital team of Jordan Ray, Ari Hirt, Steven Buchwald and David Behmoaras secured the non-recourse loan on behalf of AJ Capital, the well-regarded, Chicago-based real estate investment and development firm.

Graduate is the first hotel brand to cater exclusively to college and university-anchored markets. Targeted toward alumni and other college visitors, each hotel includes unique vignettes reflective of the university and host community, including local art as well as food and beverage options associated with the region. Launched in 2014, the Graduate portfolio currently consists of 1,355 keys in nine university-anchored markets across the country.

“We’ve worked with AJ Capital on several hospitality financings, and, once again, we were able to source extremely favorable financing in a very short timeframe,” said Ray. “Due to the asset quality and strength of the sponsorship and brand, we were able to secure non-recourse financing at a very favorable rate.”

The property is located in downtown Berkeley and is the closest hotel to the Greek Theater and 62,000-seat California Memorial Stadium, the arena of UC Berkeley’s high-profile men’s football team.

“The Durant is already a quality hotel that has undergone several million dollars of renovations over the past few years,” said Buchwald. “With AJ Capital’s additional property improvements, a greatly enhanced food and beverage program and integration into the Graduate umbrella, the Graduate Berkeley will be a best-in-class facility that will attract campus visitors, students and local residents alike.”

Mission Capital Advisors is a leading real estate capital market solutions firm that is extremely active in securing debt and equity financing for properties across the country. Recent California transactions include arranging the sale and financing of a 191,000-square-foot office and R&D portfolio in Pleasanton and refinancing a 23-asset portfolio of multifamily, retail, industrial, flex and office properties located in Los Angeles, San Francisco, and Orange County.

About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visitwww.missioncap.com.

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