Funding Purpose
Refinance of a historic hotel asset with cash out to pay off maturing CMBS loan and room upgrades and repairs.
Property Description
A historic 27 Key Hotel with 14 connected cottages and apartment units on Catalina Island.
Sponsors
Sponsor is a well respected highly successful investor with four decades of experience and a national portfolio of assets.
Challenges
- Rapidly maturing CMBS loan.
- Highly seasonal asset.
- Occupancy not fully recovered from COVID.
- Asset unsuccessfully marketed to multiple lenders before.
Solutions
- Sourced an aggressive, quick-close lender.
- Effectively communicated sponsor and asset strength.
Funding
- Interest Rate: 11%
- Amortization: Interest-Only
- Term: 24 Months
- Recourse: Non-Recourse
- Prepayment: 6 month minimum interest
- Close Date: 6/12/2024
