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 •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.