Crowne Plaza Downtown
Location: Dallas, Texas
Size: $27,000,000
Challenge: Structure
Type: Permanent Loan
Our client had a maturing CMBS loan, which had financed the acquisition and conversion of this former Hampton in 2006. His franchise agreement was lapsing in 3 years, and he was reluctant to engage IHG in renewal discussions concurrent with the loan maturity. We ran a competitive loan process, which generated an attractive loan option predicated on extending the franchise and getting a relicensing PIP. With this in hand and an impending loan maturity, we executed a parallel closing whereby negotiations with IHG produced a new 20 year license with reduced royalties that perfectly dovetailed into refinancing at max proceeds at 4.66% with 3 years of interest only followed by 30 year amortization, with a $4.75 million PIP reserve.