Thursday September 5th, 2013 - 8:57AM
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.