Shaner And Five Arrows Realty Securities V, L.P. Form Shaner Mortgage Reit For Acquisition Of Hotel Debt
Lance Shaner, Chairman and CEO of Pennsylvania-based Shaner Hotel Group, is pleased to announce the formation of Shaner Mortgage REIT ("the REIT"). The REIT will initially be capitalized with cash contributions made by Mr. Shaner and Five Arrows Realty Securities V, L.P. ("Five Arrows") and will target the acquisition of first mortgage debt secured by hospitality assets.
The REIT will be the successor to an existing vehicle formed by Mr. Shaner, which, earlier this year was successful in acquiring $65 million of face amount in first mortgage notes secured by properties affiliated with such brands as Marriott, Hilton and Starwood. "Our earlier efforts confirmed our ability to acquire debt on favorable terms. Shaner Mortgage REIT will allow us to acquire approximately $200 million of face amount of additional hotel debt over the next 18 months," Mr. Shaner said.
In implementing its acquisition program, the REIT will utilize the resources of the Shaner Hotel Group ("SHG"), a fully integrated hotel management, investment, development and financial organization based in State College, Pennsylvania. SHG has strong industry expertise and, with over 2,000 employees, can bring to bear substantial resources to underwrite and close transactions quickly.
D. Pike Aloian, a partner of Rothschild Realty Managers which acts as advisor to Five Arrows, commented on the formation of the venture saying, "Five Arrows is pleased to extend its relationship with SHG through the formation of the REIT. We believe that it has the right combination of capital and expertise to be responsive to the marketplace in the months ahead."
The REIT will be governed by a board of directors consisting of Mr. Shaner, Mr. Aloian, J.B. Griffin of SHG and John McGurk a partner of Rothschild Realty Managers.
For a confidential discussion about selling a hotel mortgage to the REIT, email Plato Ghinos at [email protected] or call (888) 861-0324.
About Five Arrows Realty Securities:
Five Arrows Realty Securities V, L.P. is the latest in a series of funds organized and managed by Rothschild Realty Managers, a New York-based investment advisory firm. The Five Arrows Realty Securities funds, which are capitalized by contributions from pension funds, endowments, foundations, and high net worth individuals, provide entity-level growth capital to public and private real estate operating companies. Since their inception in 1996, the funds have committed approximately $1.5 billion of capital into 22 entity-level investments.