NATIONAL REPORT—Deals are being made and lenders are lending. Here are a few deals to know:
Southeast Hotel Investments, Strand Hospitality Services Affiliate Acquire Hampton Inn
Strand Hospitality Services has assumed management of the Hampton Inn Atlanta – Fairburn, Georgia located at 7790 Ella Lane. The Fairburn hotel offers 99 rooms and will undergo a renovation within the next year. This Hampton Inn is the first acquired property by Southeast Hotel Investments. The Fairburn hotel is the 8th Hampton brand in Strand’s current portfolio.
Madison Realty Capital Provides $83M Loan for Hotel in Midtown Manhattan
Madison Realty Capital has provided a $83-million loan to recapitalize a 230-room hotel at 25 West 51 St. in Midtown Manhattan, located across from Rockefeller Center and in the heart of one of the highest trafficked tourist areas in New York City. Loan proceeds allowed the borrower, renowned hotelier Sam Chang, to retire the existing debt on the property and transition the hotel to another brand. Chang is the founder and chairman of McSam Hotel Group, a Long Island-based hotel development firm. The transaction closed within a rapid three-week timeframe.
MidCap Arranges $13M for Two WoodSpring Suites Extended-Stay Hotels
MidCap Funding has arranged a $13-million loan for the refinance of two WoodSpring Suites-branded hotels totaling 226 rooms in Orlando, FL. The five-year loan was structured with a 30-year amortization schedule and executed via CMBS. Loan proceeds were used to take out the existing CMBS loan, cover all closing costs, and provide the borrower with substantial cash-out proceeds. Taylor W. Grace, managing partner at MidCap Funding, negotiated the refinance on behalf of the borrower, an affiliate of Hotel Management Services Inc. (HMS), headquartered in Johnson City, TN. HMS is the owner/operator of 22 hotels across seven states in both the Southeast and Midwest. MidCap Funding, and its affiliate MidCap Hotel Loans, is a national hotel loan broker/advisor specializing in securing permanent, bridge, and construction loans for hotel acquisitions, refinances, construction and property improvement plans.