Friday April 11th, 2014 - 11:01AM
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.