From left: Fairfield Inn & Suites New York Brooklyn and Staybridge Suites in Midtown Manhattan
Square Mile Capital Management and Blackstone Group said they completed a deal to buy a $385 million portfolio of hotel loans from the Federal Deposit Insurance Corp.
The portfolio consists of 45 mostly limited-service or select-service hotels, including the Staybridge Suites at 340 West 40th Street in Manhattan and the Fairfield Inn & Suites New York Brooklyn at 181 Third Avenue in the Boerum Hill area of Brooklyn.
The firms did not disclose a price, but a source familiar with the deal confirmed that the 45-hotel portfolio, whose loans were all originated by the failed Atlanta-based Silverton Bank, was acquired for 80 cents on the dollar.
A majority of the loans in the portfolio are current, but there are a few loans that will need to be worked out, officials said.
The Wall Street Journal last month reported that a deal was in the works to acquire the loans, marking the second acquisition of Silverton hotel loans by Square Mile since last year.
In May 2010, Square Mile won the auction for a $421 million portfolio of loans in a joint venture with the FDIC. Square Mile bit 81 percent of the unpaid principal balance on those Silverton Bank loans, backed by 57 hotels.