Madison Realty Capital lends $316 million to Four Seasons Hotel in New Orleans – Business Observer

Madison Realty Capital (MRC) granted a loan of $315.6 million to Carpenter & Company and Woodward’s interests for the Four Seasons Hotel & Residences in New Orleans, Commercial Observer has learned.

The MRC loan will finance the completion of the renovation of the asset.

“The Four Seasons New Orleans is well positioned along the Mississippi River, between the French Quarter and central business districts, to capitalize on demand from New Orleans’ robust tourist market and expanding business district. Josh Zegenchief executive and co-founder of MRC, said.

MRC is no stranger to Four Seasons assets, and this deal completes a loan hat trick. In July 2021, the firm provided a $105 million loan at Strong Partners for the acquisition and renovation of the Four Seasons Hotel in Miami. The case followed an MRC loan of $210 million to the same sponsor in 2019 for its construction of the 22 floors Four Seasons Hotel and Private Residences Fort Lauderdale.

“We are thrilled to leverage our knowledge of the Four Seasons brand to provide a fast, personalized financing solution to a group of experienced borrowers for a well-known New Orleans landmark with exciting cultural attractions,” added Zegen.

The hotel with 341 keys, at 2 Canal Street, is part of a 33-story mixed-use tower with 92 condominium units on the upper floors, about half of which are now sold. In July 2021, the penthouse sold for just under $13 millionaccording to the wall street journal.

The property will include event space, two restaurants, an outdoor swimming pool and private gardens. It is also the home of View Orleansa 360-degree observation deck with panoramic views of the city.

The Four Seasons is in a prime location about 20 minutes from both city airports. Designed to meet the needs of different visitors to The Big Easy, the hotel is close to the Ernest N. Morial Convention Center for business travelers and Caesars Superdome and Smoothie King Center for sports fans.

“Madison Realty Capital has considerable expertise in investing in Four Seasons projects, and we are pleased with their team’s ability to work quickly and provide execution certainty,” Richard Friedman, chairman and chief executive of Carpenter & Company, said in prepared remarks. “We look forward to taking the next step in this exciting project as we raise the bar for hotel quality in New Orleans.”

JLL Capital MarketsRiaz Cassum and Henry Schaffer negotiated financing.

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