PMZ Realty Capital Secures $25M Cash Out Loans for Trio of Hilton Hotels

NEW YORK—PMZ Realty Capital LLC has secured three hotel loans totaling $25 million. The three Hilton brands refinanced are the 112-room Hilton Garden Inn in Flowood, MS; the 70-room Hampton Inn in West Point, MS; and a 90-room Tru by Hilton in McDonough, GA.

Deal highlights include:

Hilton Garden Inn – Flowood, MS

PMZ Realty Capital obtained a 10-year, non-recourse CMBS loan with 30-year amortization for this 112-room property.

“The owner focused on a successful transaction that allowed cash back in the deal to complete the investment goals,” stated Michael H. Sonnabend, managing member, PMZ Realty Capital. “Our extensive network of lenders allowed us to source the right deal and the property is the only full service hotel in the market with easy access to the airport.”

This 112-room Hilton Garden Inn features airport shuttle service, an outdoor saltwater pool and a full-service restaurant. The property is located in the Dogwood Festival Plaza near a myriad of dining options. Local attractions close to the hotel include Winner Circle Park, the Mississippi Coliseum and Refuge Golf Course.

Hampton Inn – West Point, MS

Working with lenders, PMZ Realty Capital assisted the hotel owners to secure a 10-year, non-recourse CMBS loan with 30-year amortization.

“Solid Hilton brands are successful even in tertiary markets,” commented Sonnabend. “Satisfied owners appreciate when PMZ Realty Capital leverages its relationships with lenders to execute a deal and provide cash out opportunity on invested equity.”

Tru by Hilton – McDonough, GA

“This deal represents both the power of the Tru by Hilton and our ability to forge new ground in the CMBS sector,” said Sonnabend. “The CMBS loan met RevPAR Development LLC’s strategic goals and we able to work closely with lenders to create a new way to complete a transaction in the hotel real estate sector.”

This CMBS loan was a 10-year, non-recourse loan with 30-year amortization. Opened in 2017, the 90-room, four-story hotel had limited operating history, creating the unique challenge of convincing underwriters to undertake the cash out refinancing. Working with underwriters partners, PMZ Realty Capital offered guidance on the hotel’s emerging category, brand strength, operating capabilities and track record of RevPAR Development LLC.

“This cash out financing is a boost for RevPAR Development”, said Pete Patel, president/CEO, RevPAR Development LLC. “This is our second transaction using PMZ Realty Capital during the previous 12 months. We appreciate PMZ’s steady guidance, detailed process and proactive advocacy to complete the refinancing quickly. Completing this transaction allows RevPAR Development LLC to grow by increasing our financial flexibility.”

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