In recent financing news, PMZ Realty Capital has arranged financing for three TownePlace Suites properties in the Greater Denver area; GreenLake Asset Management has funded a construction loan for three Marriott-affiliated properties; Bloomfield Capital has provided a $7-million loan for a southern Illinois hotel; and RobertDouglas has advised a joint venture in refinancing an existing loan for DoubleTree Suites in Nashville.
PMZ arranges financing for three Denver-area TownePlace Suites
PMZ Realty Capital LLC, a national boutique real estate investment banking firm, has arranged financing for three TownePlace Suites by Marriott properties in Colorado. The $20-million non-recourse loan with a bank allowed the owner to refinance existing debt that had matured with a rate below 5%.
The portfolio includes the 112-suite TownePlace Suites Denver Southeast, the 150-suite TownePlace Suites Boulder Broomfield Interlocken and the 94-suite TownePlace Suites Denver Tech Center. The hotels are all located in the Greater Denver area and feature complimentary breakfast, high-speed internet, a 24-hour business center, a 24-hour fitness center, guest laundry facilities and an outdoor swimming pool.
“Having a strong sponsor with top-notch management made this an ideal project for a large bank,” said Michael H. Sonnabend, managing member, PMZ Realty Capital. “Despite the current capital market uncertainty, our relationships allowed us to secure multiple proposals from various lenders offering attractive terms.”
The all-suite properties are located near Sports Authority Field at Mile High, Coors Field, Pepsi Center, Colorado Convention Center, Elitch Gardens, Craig Hospital, National Jewish Hospital and CU Boulder.
GreenLake funds $77M construction loan for Marriott properties
Los Angeles-based GreenLake Asset Management LLC has funded a $77-million ground-up construction loan for three Marriott-affiliated properties in Flagstaff, AZ; Tracy, CA; and Greeley, CO.
The TownePlace Suites in Flagstaff, AZ, will be an extended-stay hotel offering 94 units; a second TownePlace Suites in Tracy, CA, will feature 108 rooms located near Northern California’s industrial thoroughfares; and the 110-room Residence Inn in Greeley, CO, is located 30 miles east of the Rocky Mountains.
“The sponsor is an experienced hotel developer, owner and operator, and is a significant Marriott franchisee,” said Peter Chang, managing principal, GreenLake. “He has a proven track record, and we have built trust with him through prior deals. All three sites are permitted and ready for development in great locations with high barriers to entry. This deal enables the sponsor to expand his presence in the Rocky Mountain and Southwest regions.”
Bloomfield Capital provides $7M loan for Illinois hotel
Bloomfield Capital has closed on a $7-million senior bridge loan on a limited-service hotel located in southern Illinois.
The flagged hotel was originally built by the sponsors in the mid-2000s as a full-service property. Bloomfield’s bridge loan will fund the conversion of the property to a limited-service flag, which is expected to drive additional demand for the hotel. The property benefits from its location near a Division 1 university, a regional hospital and additional business and leisure demand drivers in the market.
Bloomfield Capital’s senior bridge loan will also provide for the renovation capital on the hotel.
“Limited-service hospitality financing continues to be a focus for us,” said Jason Jarjosa, partner/managing director, Bloomfield Capital. “Banks have pulled back in this sector, and we’re seeing more and more opportunities to provide bridge capital for property improvement plans on well located and relatively new hotel assets such as this.”
Bloomfield quickly underwrote the sponsor’s renovation budget, as well as the hotel’s historical and projected operating performance. The sponsor plans to refinance Bloomfield’s bridge loan with a conventional loan upon completion of the required renovations and stabilization of the hotel’s operations.
RobertDouglas advises for $19.2M refinancing for Nashville DoubleTree
RobertDouglas advised a joint venture between Wexford Lodging Advisors and Trinity Private Equity Group in refinancing its existing loan for the 138-key, all-suites DoubleTree Suites Nashville Airport. The new, non-recourse senior mortgage is $19.2 million and has a five-year term. The floating-rate financing was provided by a leading life insurance company’s real estate credit platform.
The hotel, located in the Nashville Airport submarket, is undergoing a $1.2-billion renovation and is within eight miles of the heart of Downtown Nashville.
“The hospitality market for Nashville and its airport submarket continues to show strong growth, influenced by the airport renovation and the high level of complementary investment,” said Patrick Tan, associate, RobertDouglas. “The combination of DoubleTree Suites Nashville Airport’s institutional sponsorship and compelling business plan attracted strong interest from a diverse pool of lenders.”
Evan Hurd, principal/managing director, added, “Nashville has an outstanding mix of leisure and corporate demand that is fueling strong investment activity in many asset classes, especially hospitality. We are pleased to complete this transaction in our new regional base of Nashville and look forward to further contributing to its investment and lending community.”
For more on the Nashville market, see the May issue of Hotel Business.