Watermark Lodging Trust, a Chicago-based hotel REIT formed by the merger of two former Carey Watermark vehicles, has completed a strategic financing transaction with Ascendant Capital Partners and Oaktree Capital Management.
The company received $200 million of preferred equity capital and a commitment of up to $250 million of new preferred equity capital over the next 18 months. The investors have also been granted warrants to purchase up to 6.75% of the company’s fully diluted common equity.
In connection with the transaction, Ascendant CEO Russell Gimelstob and head of hospitality Alexander Halpern have joined the non-traded REIT’s board of directors. Hodges Ward Elliott advised Watermark on the financing.
“This transaction provides us with additional operational and financial flexibility as we navigate the current economic environment, strengthens our balance sheet and creates a pool of capital with which we can opportunistically pursue growth,” said Michael Medzigian, chairman and CEO of Watermark.
Pictured: Watermark’s Renaissance Chicago Downtown.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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