$8,500,000 | Cleveland, TN
CHC Closes $8.5MM Loan for Recently Constructed Hampton Inn
David Turley, Janet Proscia and Jeffrey Pacailler recently secured an $8.5 million CMBS loan for a Hampton Inn & Suites in a secondary Tennessee market. The loan amount represents the client’s entire cost basis in the property.
The Hampton Inn was completed in January 2013 and offers 97 guest rooms. It is situated just off I-75 and near several shopping malls, city attractions and Fortune 500 companies.
CHC successfully obtained a loan at 65% LTV on a 10/25. The interest rate was locked in the low 4%’s at a spread of 195bps over the 10-year Swap rate. CHC was also able to negotiate a full wavier of cash management for DSCR, a very attractive feature for the client.
David Turley commented: “This was a challenging assignment even at 65% LTV given the cash out and the property’s limited operating history. However, CHC was able to successfully communicate the strengths of the Property which were backed up by impressive performance metrics – occupancy, ADR and RevPAR – within its comp set.”
“We ran a thorough marketing process,” added Janet Proscia, “and asked lenders to bid on both the economic and legal terms of the transaction. The client was very pleased to secure not just an attractive rate but also flexible terms that will make the loan easy to live with over the next 10 years.”
Founded in 1897, David Cronheim Mortgage Corporation and its affiliate companies, including Cronheim Hotel Capital, provide debt and equity capital for a wide spectrum of commercial real estate assets. Through their Channel Real Estate Funds affiliate they have provided equity capital for numerous real estate investments in an efficient and cost effective manner. Cronheim Mortgage maintains correspondent and/or servicing relationships with twelve institutional investors, mostly insurance companies, and currently services $2,000,000,000 of debt. The company and its insurance company correspondents have substantial debt and equity capital to invest in quality real estate at pricing below alternative sources, especially for long-term debt.