Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to source a cash out refinance for a Comfort Inn & Suites in the Midwest U.S.
Property Description
The location consists of an 82-key hotel covering 53,544 square feet. Amenities include a fitness center, business center, pool, and a meeting event space.
Sponsors
The sponsor is a seasoned hotel operator with 18 years of experience. He owns and operates multiple hotels as well as other asset types including multi-tenant retail.
Challenges
- Tauro marketed the deal during a rising rate environment.
- Sponsor’s initial SBA loan jumped to 8.00%.
- Tauro faced a tight window to close loan.
- Limited interest was expressed from lenders.
Solutions
- Tauro went out to roughly 60 lenders in the local market.
- Tauro was able to source a lender that was able to beat sponsor’s relationship bank by 0.75%
- Tauro was also able to keep the lender at the initial rate presented even through a fed rate increase.
Funding
- Loan Amount (LTV): 70%
- Interest Rate: 5.50%
- Amortization: 25 Years
- Term: 7 Years Fixed
- Prepayment: None
