Attorney Completes Two Refinancing Transactions Totaling $71.5 million

Press Release
November 8, 2006

Dealmakers: Martin Schwartz, a Partner in the Real Estate Group at Bilzin Sumberg

Transaction: Representation of the borrower in two refinancing loans for the Hyatt Hotel and Conference Center in Weston, Florida

Borrowers: Bonaventure Hotel Associates, Ltd.

Lenders: WestLB AG and Marshall Investments Corporation

Loan Amounts: $62.5 million and $9 million respectively

Closing Date: November 8, 2006

Details: Bilzin Sumberg attorney Martin Schwartz represented the borrower in the negotiation and closing of two refinancing loans. The first loan, funded by WestLB AG, is for $62.5 million. The second, which is funded by Marshall Investments Corporation, reduces and restructures an existing loan. The loans will refinance existing debt and provide funds to complete renovations at the Hyatt Hotel and Conference Center in Weston, Fla.

The transaction was accomplished on an expedited basis, but involved complicated documentation in severing an existing mortgage into two pieces and consolidating it with another mortgage to minimize additional tax liability on the new financing. The property includes a Hyatt hotel, a state-of-the-art conference center, hotel condominiums and a Red Door Spa managed by Elizabeth Arden.

Several challenges presented during the negotiation and closing of the loans. Consents had to be obtained from Hyatt and Elizabeth Arden, and simultaneous negotiations were ongoing with three lenders, WestLB, Marshall Investments and SageCrest II, LLC, a company which had previously furnished a mezzanine loan to the hotel. All transactions were completed within six weeks. The refinancing was accomplished immediately following additional financing of $9 million, which had been provided to the hotel in September and which was replaced by the new financing.

About the Borrowers

Bonaventure Hotel Associates, Ltd. is controlled by Thomas K. Ireland. The hotel came under Hyatt management in September 2006.

About the Lenders

WestLB AG is a 290 billion international bank focusing on lending, structured and project finance, capital markets, asset management, transaction services and real estate finance. Marshall Investments Corporation is a wholly-owned subsidiary of The Marshall Group, Inc., a full-service commercial loan origination company.

About Bilzin Sumberg 

Bilzin Sumberg is a commercial law firm based in Florida. The Firm’s core practices include Business Finance & Restructuring, Corporate, Environmental, International, Land Development & Government Relations, Litigation, Real Estate, and Tax. For more information, please visit bilzin.com.

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