Brookfield Asset Management is using $220 million in loan proceeds to refinance a Hilton-branded hotel in Fort Lauderdale.
According to the S&P Global Ratings report, Coastal Commercial Mortgage Trust is providing a two-year, variable-only commercial mortgage-backed securities loan to Brookfield.
About $136 million, or 62 percent of the CMBS loan, will be allocated to the Brookfield-owned Hilton Fort Lauderdale Hotel at 181 SE 17th Street, with the remainder allocated to a Wythe Hotel in Savannah, Georgia. Ting brand hotels, the report noted.
Citi Real Estate Funding and Natixis Real Estate also provided a $30 million mezzanine loan for the two properties.
In 2018, Brookfield bought the 595-room Hilton from Blackstone for $170.6 million, records show. That same year, Citibank provided a $139.1 million mortgage to a Brookfield affiliate that owns a nine-acre property in Fort Lauderdale that also includes a 33-berth marina.
Brookfield, a Toronto-based global asset manager led by CEO Bruce Flatt, recently sold another major hotel in Broward County. In February, the company sold the 1,000-room Diplomat Beach Resort in Hollywood to a joint venture between Honolulu-based Trinity Investments and Credit Suisse for $850 million.
In recent months, the $800 billion Brookfield Corp. has had some trouble with commercial properties it owns in other states. Brookfield is facing a foreclosure lawsuit in New Jersey after defaulting on a $225 million loan guaranteed by its superregional mall, Woodbridge Center. Service staff also pointed to debt problems at eight other malls Brookfield owns across the country.
In Los Angeles, Brookfield defaulted on more than $1.1 billion in debt related to six office buildings owned by the company, two of which have been taken over by court-appointed receivers.
Brookfield also owns the Pembroke Lakes Mall in Pembroke Pines, which, according to a Morningstar report last year, may struggle to pay for a $260 million contract due in 2025. USD interest-only CMBS loans for refinancing. Occupancy at the mall fell from 100% to 84%, and reduced cash flow could affect Brookfield’s ability to secure new financing, the report said.