Dealmaker: JLL Secures $430M for Fairmont Austin Hotel in Texas

(Illustration courtesy of JLL)

JLL, Chicago, arranged a $430 million refinancing for Fairmont Austin, a 37-story hotel in downtown Austin, Texas.

JLL Capital Markets represented Manchester Financial Group in securing the five-year, interest-only fixed-rate SASB CMBS loan. Goldman Sachs acted as lead manager and sole bookrunner. The all-mortgage financing package was used to replace a $300 million senior loan and $125 million of mezzanine debt.

Fairmont Austin spans 1.4 million square feet, standing as the city’s fifth-tallest building. Developed by Manchester Financial Group, the hotel opened in 2018 with 1,048 guestrooms and suites, nearly 140,000 square feet of meeting space, a full-service spa and a walkway providing direct access to the Austin Convention Center.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole and Director Olga Walsh.

“Despite today’s challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group,” Walsh said. “This led to a competitive marketing process and, in the end, beneficial and highly tailored terms for our client.”