A Look at Five Finance Deals

NATIONAL REPORT—Transactions are taking place across hospitality. Madison Realty Capital, The Bluestone Group, Hospitality Funding, Berkadia, JLL and Mag Mile have all completed finance deals:

Madison Realty Capital, The Bluestone Group Provide Financing for Mixed-Use Project
Madison Realty Capital (MRC) and The Bluestone Group originated a $30.5-million financing package collateralized by a 6.25-acre, mixed-use development site in Orange County, CA. The financing includes a $24.5 million first mortgage loan from MRC and an additional $6 million in preferred equity provided by The Bluestone Group for the balance of the loan. The development will include a hotel, multiple food and beverage outlets, retail and parking options.

Hospitality Funding Arranges Loan for Acquisition of 45-Hotel Portfolio
Hospitality Funding Inc. has arranged a $145-million acquisition loan for an affiliate of VCM Ltd to purchase 45 hotel properties from American Hotel Income Properties REIT LP (AHIP). AHIP plans to use the net proceeds from the sale, after repayment of property mortgages and transaction closing costs, to acquire additional premium-branded hotels that are better suited to its long-term strategy, and for general corporate purposes.

Berkadia Completes Sale and Financing for Property in Montana
Berkadia’s Hotels & Hospitality team has revealed the sale and financing of TownePlace Suites Whitefish Kalispell in Whitefish, MT. Senior Directors Matt Bailly and Spencer Scott completed the sale on behalf of Scottsdale, AZ-based Glacier House Hotels. Director Adrienne Kautzman secured financing on behalf of the buyer Venture Hospitality. The sale represents a sub 7.5% cap rate for the ramping hotel. The 10-year, fixed-rate loan features a 60% loan to cost and three years interest only. The 81-suite hotel is next to Glacier National Park, close to Glacier International Airport, Whitefish Lake, Whitefish Mountain Resort and Flathead Lake.

JLL Arranges Refi for Hampton Inn & Suites in Irvine, CA
JLL has arranged a $33.25 million refinancing for the Hampton Inn & Suites Irvine-Orange County Airport, a 164-room, limited-service hotel in Irvine, CA, close to John Wayne Airport, Orange County. JLL worked on behalf of the borrower, Orange County, CA-based S3 Hotel Group, to place the 10-year, fixed-rate loan with a CMBS lender. The hotel is proximate to Disneyland; University of California, Irvine; the Honda Center; Angel Stadium of Anaheim among other demand generators.

Mag Mile Capital Delivers $12.2M in Loans for Two Kentucky Properties
Mag Mile Capital’s Rushi Shah, principal/CEO, and VP Prabhat Jayara have completed two, non-recourse loans on behalf of Seva Hospitality for the acquisition of a Days Inn and Comfort Suites in Florence, KY. The Comfort Suites has four stories and 84 rooms. The Days Inn has three stories and 115 rooms. Mag Mile Capital closed the two loans, for $7.5 million and $4.7 million respectively, at low 4% coupon, 10-year terms and with 25-year amortization.