Terra Capital Closes $8.8M Mezz Loan on Sheraton Deal
Thursday September 5th, 2013 - 8:57AM ZSBHQ
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NEW YORK—Terra Capital Partners closed a three-year, $8.8 million mezzanine loan as part of multi-level financing for California-based Presidio Companies’ purchase of the 431-room Fort Worth (TX) Sheraton Hotel & Spa.
According to Bruce Batkin, president/CEO of Terra Capital, the hotel had been operating in bankruptcy and was facing "imminent" foreclosure. "Our financing was part of a $58 million capital stack that enabled the borrower to acquire the hotel out of bankruptcy through a section 363 sale," he stated.
The capital structure also helped fund a $4 million PIP, which will allow the sponsor to implement a new marketing and management plan, added Batkin.
Tags: Terra Capital • Presidio • Batkin • Mezzanine • Foreclosure • Sheraton • Hospitality • Brands • Ownership • Owners/Operators • Sources of Funding • Investment Funds •
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.