PRZOOM - /newswire/ -
New York, NY, United States, 2013/11/07 - Terrace Capital announced that it has secured $7MM in non-recourse, mortgage financing for a portfolio of three Baymont Inn & Suites, limited-service hotels, located in Battle Creek & Kalamazoo, Michigan - TerraceCapital.com.
The portfolio of three properties consisted of 361 rooms located at, 2203 South 11th Street & 6420 Cracker Barrel Boulevard in Kalamazoo, MI and 4725 Beckley Road in Battle Creek, MI.
The proceeds of this $7MM, 65% loan-to-value non-recourse loan were used by the borrower, for the refinance of recourse, local bank renovation debt. The new debt had a 10-year fixed term, 25 year amortization schedule and contained a substantial cash out to the borrower. The sponsor of these hotels currently owns and operates approximately 70 branded hotel properties in Michigan & Ohio and uses Terrace Capital exclusively for his non-recourse, hotel debt. The new financing will allow the firm to cut its contingent liabilities and draw on lines of credit for new hotel development & renovation projects.
A managing director at Terrace Capital acknowledged that obtaining hospitality financing for the economy brands of Wyndham (Ramada, Knights Inn, Days Inn, Super 8, Travel Lodge and Howard Johnson) can be extremely challenging in the current environment, particularly in the state of Michigan, though Terrace was able to structure a loan for these well-performing properties at a competitive rate, slightly above 5%. Terrace Capital’s success in this arena has made it a leader in hotel mortgage financing in the last two years and a valued partner for growth in the hospitality space.
About Terrace Capital
Terrace Capital (terracecapital.com) focuses on non-recourse, permanent loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
The company recently re-started its small balance bridge lending program, which focuses on non-bank lending opportunities of $1MM and higher on residential and commercial properties in all 50 states.