Barings and Aareal Capital Corp. Provide $303 Million Debt Package for Graduate by Hilton 7-Pack

September 15, 2025 at 09:00 AM EDT

Barings, one of the world’s largest diversified real estate investment managers, announced today it has originated a $303 million debt package in partnership with Aareal Capital Corporation to an affiliate of AJ Capital Partners. The debt package will refinance the Graduate by Hilton 7-Pack — a portfolio of seven full service, upper-scale hotels totaling 1,340 keys in university-anchored markets across the country. The loan was structured with mezzanine and senior mortgage components. Barings funded the mezzanine component of the loan, with Aareal Capital Corporation originating the senior portion.

“We are excited to partner with both Aareal and AJ Capital Partners, a best-in-class hospitality investor, to support the growth of this high-quality and geographically diverse portfolio located in prime university markets across the country,” said Ryan Naumes, Managing Director with Barings. “With close proximity to vibrant campus communities and local amenities, we believe these properties are positioned for strong performance and long-term value creation.”

Each hotel is situated within approximately one mile of a major university and is surrounded by shopping, dining, and entertainment options. The properties incorporate design elements inspired by their local surroundings and offer amenities including meeting spaces and on-site food and beverage options.

CBRE advised the sponsorship on the financing.

This transaction expands Barings’ $32.1+ billion* real estate debt platform, which leverages the team’s broad direct origination capabilities and deep credit expertise to invest in loans secured by institutional-quality commercial real estate.

*As of June 30, 2025, including $3+ billion of assets under advisement

About Barings

Barings is a $456+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.

*As of June 30, 2025

About Aareal Capital Corporation

Aareal Capital Corp. is a subsidiary of Aareal Bank AG. Aareal Bank AG, headquartered in Wiesbaden, is a leading international property specialist. The Bank uses its expertise to identify trends, challenges and opportunities at an early stage, and to exploit them for the benefit of its stakeholders. It provides financings, banking services and payments solutions for the property sector and related industries, and is present across three continents, Europe, North America and Asia. Aareal Bank’s business strategy focuses on sustainable business success, with environmental, social and governance (ESG) aspects as an integral part of this strategy. Aareal Bank comprises the business segments Structured Property Financing and Banking & Digital Solutions. The Structured Property Financing segment contains the property financing and refinancing activities. Here, the Bank supports its clients in making large-volume commercial property investments. The investment properties mostly comprise office buildings, hotels, shopping centres, logistics and residential property, as well as student apartments. In the Banking & Digital Solutions segment, Aareal Bank supports businesses from the housing, property management and energy industries as a digitalisation partner – combining extensive advisory services and product solutions with traditional corporate banking services and deposit-taking.

About AJ Capital Partners

AJ Capital Partners is a vertically integrated real estate investment manager founded in 2008. AJ repositions real estate to build timeless, scalable businesses and brand platforms across hospitality, mixed-use, and residential sectors. Notable brands include Graduate Hotels®, Marine & Lawn Hotels & Resorts, and Field & Stream Lodge Co. The firm delivers transformative real estate by applying placemaking, inspired design, and hospitality principles to spaces overlooked or undervalued by traditional investment firms. The firm’s current portfolio includes $5.9 billion of assets across 100+ properties and 50+ geographic markets. Learn more at www.ajcpt.com.