JER sells Virginia hotel to Thayer

The McLean, Virginia-based firm also confirms the sale of a portfolio of residential and commercial properties in Berlin to Corestate.

JER Partners has sold a Washington DC-area hotel to Thayer Lodging Group after spending the past year restructuring the property’s debt.

The McLean, Virginia-based firm declined to disclose financial details of the sale, but said it had bought back the $40 million B-note secured against the 395-room Fairview Park hotel, in Falls Church, Virginia, for around a 75 percent discount.

JER originally acquired the hotel for $108.5 million in February 2007, and spent $3.9 million renovating the public areas of the property. With metropolitan DC-area properties increasingly in demand, JER added it had not marketed the property for sale but received numerous unsolicited bids.

Thayer bought the hotel through its $280 million Thayer Hotel Investors V fund, which closed late 2009. Sources added that the deal represented a 6 percent yield for JER.

JER also confirmed the sale of a portfolio of 40 residential and commercial properties in Berlin to Corestate Capital, the firm founded by former Cerberus Germany real estate head Ralph Winter. JER bought the properties with European Commercial Assets in 2005, with a JER annual review at the time saying it had closed four joint venture deals with ECA totalling around €190 million.

Corestate said earlier this year it had acquired the 40 property portfolio – which involved the assumption of securitised CMBS debt – in a deal worth roughly €160 million. A majority of the assets were located in Berlin, including a €35 million project development in the city centre. The portfolio offers slightly lower than market rents and includes more than 2,000 apartments.