The developer of the Moxy NYC Downtown transferred ownership to its lender AllianceBernstein .
Generally , the commercial real estate market in the U . S . is flourishing as asset values declined far less than during the Great Recession of 2008 / 2009 and have already reversed course into a recovery . In addition to federal government support of the economy , thus far lenders have been flexible with forbearance terms and have avoided widespread foreclosures .
Copious amounts of all types of debt and equity are available from domestic and offshore entities that currently perceive U . S . hotels as desirable acquisition and investment opportunities , particularly due to the notion of being able to continuously raise room rates during an inflationary environment . Furthermore , rescue capital to provide needed liquidity for hotel owners to retain their assets is competing with opportunistic investors seeking distressed investment plays . Although both acquisition and rescue capital
groups have similar investment objectives to generate alpha returns , rescue focused funds that offer preferred equity , mezzanine debt and / or fresh joint venture money tends to be oriented to short-term hold positions .
Recently , several high-profile institutional rescue capital transactions have enabled lodging ownership platforms to optimize their operational and financial flexibility , while navigating the current economic environment . Additionally , these deals allow for strengthening of balance sheets , and the creation of pools of capital with which strategic growth prospects can be pursued . Cases in point during the recent past include :
• A joint venture between Ascendant Capital Partners and Oaktree Capital Management invested US $ 200 million of preferred equity capital and a commitment of up to an additional US $ 250 million of new preferred equity capital over 18 months in Watermark Lodging Trust .
• ACORE Hospitality Partners , an affiliate of ACORE Capital LP , invested US $ 200 million in a preferred equity position in AJ Capital Partners affiliate Graduate Hotels .
• Ashford Hospitality Trust secured a strategic financing commitment from funds managed by Oaktree Capital Management to provide a US $ 200 million senior secured term loan that can be upsized by US $ 150 million to an aggregate amount of US $ 350 million .
• Hospitality Investors Trust , a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust , filed for Chapter 11 bankruptcy to reorganize US $ 1.3 billion of unsecured
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