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JANUARY 12, 2017 – Davis Wright Tremaine has advised Mr. Clement Chen, the principal owner of The Westin Palo Alto Hotel, in securing an $83 million CMBS loan from LStar Capital, the credit affiliate of global private equity firm Lone Star Funds.
The Westin Palo Alto is owned by an affiliate of Mr. Chen’s Pacific Hotel Management LLC, which operates eight prestige properties in California, including the new concierge-style super-luxury hotel, The Clement Hotel, also in Palo Alto, and InterContinental The Clement Monterey, on historic Cannery Row in Monterey. The latter property was also refinanced by LStar in 2015 for $72.5 million, another loan in which DWT advised Mr. Chen. The Hunton & Williams law firm, with a team based in Dallas, served as counsel to the lender in both loans.
"Our client’s hotels are outstanding performers, and comprise a significant part of the LStar funds in which they are securitized," said Steve Ledoux, co-chair of the DWT’s Hotels & Resorts practice group. "We are starting 2017 off with a bang, and look forward to a positive and dynamic year for CMBS borrowers and for all kinds of strategic hotel transactions."
The mortgage broker for The Westin Palo Alto loan and for the InterContinental The Clement Monterey loan was Highland Realty Capital.
About Davis Wright Tremaine
Davis Wright Tremaine LLP is a national law firm with more than 550 lawyers representing clients based throughout the United States and around the world. In 2016, the firm was named "Innovative Law Firm of the Year" for the second consecutive year by the International Legal Technology Association. For more information, visit www.dwt.com.
About Pacific Hotel Management
Pacific Hotel Management, LLC, is a privately-owned company specializing in the development and management of high quality hotels. PHM's professional management team manages mid-market brands such as Courtyard by Marriott, extended-stay brands such as Residence Inn by Marriott and Homewood Suites by Hilton, and upscale brands such as Westin, Sheraton and InterContinental Hotels & Resorts. PHM's newest hotel, The Clement Hotel Palo Alto is an all-inclusive luxury 23 one-bedroom all-suite property. For more information, visit www.phmhotels.com.
About Hunton & Williams LLP
Hunton & Williams LLP provides legal services to corporations, financial institutions, governments and individuals, as well as to a broad array of other entities. With more than 750 lawyers practicing across the United States, Europe and Asia, Hunton & Williams helps clients realize new opportunities and solve complex problems with confidence. For more information, visit www.hunton.com.
About LStar Capital Finance
LStar Capital Finance (LStar) is a credit affiliate of Lone Star that provides both commercial real estate and corporate lending expertise. Lone Star is a global private equity firm that invests in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 17 private equity funds with aggregate capital commitments totaling approximately $70 billion.