PMZ Realty Secures $18M for DoubleTree Renovation
Friday April 11th, 2014 - 11:01AM SF
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FRESNO, CA—PMZ Realty Capital, LLC, secured a loan for more than $18 million in financing for a property slated to be reflagged as the DoubleTree by Hilton Fresno following a 12-month renovation.
“The financing of this property presented some unique challenges as it will not retain a franchise affiliation during its year-long renovation. Despite the uncertainty, which precluded many lenders from providing a non-recourse, fixed-rate transaction, PMZ was able to obtain extremely favorable ‘vanilla’ financing,” stated Michael H. Sonnabend, managing member, PMZ Realty Capital-Hotel Finance Group.
“We were pleased to work with PMZ and gain terms allowing us to repay the existing debt and still provide $6 million to renovate the property and convert it to a Doubletree by Hilton,” stated Ed Chan, of the ownership group. “The 10-year term with 30-year amortization and an interest rate below 5% will allow the property to be positioned favorably to succeed once the renovation is complete. It’s a win-win situation for everyone involved.”
The property, located across from the Fresno Convention and Entertainment Center, offers 27,000 sq. ft. of meeting space.
Tags: PMZ Realty Capital • LLC • DoubleTree by Hilton Fresno • renovation • Hospitality • Brokers • Sources of Funding •
The theme of this year’s ALIS conference was “Don’t Worry, Be Happy.” But, lets face it, there are always going to be some people who aren’t happy unless they are worried about something—whether it’s the Fed potentially raising interest rates or that the price of oil is now too low, threatening to cripple the economies of some foreign nations.