Apollo Commercial Real Estate Finance Announces $50M Capital Deployment

Apollo Commercial Real Estate Finance

today announced the closing of a $50 million mezzanine loan secured by equity interests in a borrower that owns a portfolio of three full-service conference hotels located in Dallas, TX, Denver, CO and St. Louis, MO, totaling 3,981 keys. The mezzanine loan has been underwritten to generate an internal rate of return of approximately 12.6%. The mezzanine loan is part of a $410 million four-year (three-year initial term with one one-year extension option), floating rate loan refinancing comprised of a $295 million first mortgage and a $115 million mezzanine loan, which was bifurcated into a $65 million senior portion and ARI's $50 million junior portion. ARI's mezzanine loan has an interest rate of one-month LIBOR + 10.9%, 30-year