Property Type: 102 room Days Inn, Full Service Hotel Loan Amount: $2,800,000 Loan: Cash Out, Non-Recourse, Permanent Financing
Transaction Summary: Our Client was informed that his bank was not interested in rewriting their loan, which had matured. The Bank’s decision was based on a concentration issue in their portfolio and their lack of interest in funding hotel properties. Our assignment… to secure long term, non-recourse financing to payoff the loan and obtain an additional $800,000 to fund future capital improvements. Results: NYCL prepared a comprehensive financing proposal for investors and assessed the pros and cons of each term sheet to ensure the financing matched our clients needs. Thereafter, NYCL procured a $2,800,000 loan that was written at 9.1%, fixed for 10 years, and was non-recourse. NYCL negotiated an additional $100,000 from the original loan request, along with the $800,000 cash out. It is noteworthy that as part of NYCL’s negotiation, we insisted, and received, approval from the lender to waive restrictions on the cash out.