NEW YORK—PMZ Realty Capital LLC, a national boutique real estate investment banking firm, has helped secure three significant non-recourse loans for the Holiday Inn Carmel, IN; Hilton Garden Inn Houston Clear Lake, TX; and Holiday Inn Express & Suites Houston North Intercontinental.
The 171-key Holiday Inn Carmel property received a $13-million interest-only, non-recourse bridge loan that allowed the owners to get back most of the equity invested in the property, even though it was not yet stabilized at the time of closing. The borrower also recouped over $2 million in funds it had invested in the property for renovations that was now needed for other transactions.
The 126-room Hilton Garden Inn Houston Clear Lake was able to secure a loan sourced by PMZ. The loan closed in 30 days per the owners’ request with a rate below 4.5% for a 10-year term with 30-year amortization.
The 109-room Holiday Inn Express & Suites Houston North InterContinental’s non-recourse acquisition loan was accelerated by PMZ due the nature of the acquisition and provided assurance to the owner of the impending closing. The loan was 70% loan to cost and included all transaction and PIP costs.
“In each of these cases, PMZ was hired to arrange financing that helped expedite the financing and also provide certainty of closing within a short time frame,” stated Michael Sonnabend, managing member, PMZ Realty Capital-Hotel Finance Group. “We were pleased to be chosen for our ability to provide a high-level of service to our clients and obtain these loans on their behalf. These non-recourse loans exemplify our expertise in the financial domain and allowed our clients to remove certain risk associated with higher interest rate loans, as well as obtain larger loans than offered by other lenders. We were also instrumental in getting back much-needed equity to reinvest in renovations and other necessary transactions costs.”