Comfort Inn & Suites – Refinance

Midwest, US

$4,000,000

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

Director  | Capital Advisor

714-655-3720

glaws@taurocapitaladvisors.com