Embassy Suites Portfolio

Location: Five Hotel Portfolio

Size: $170,000,000

Challenge: Deal Structure

Type: Bridge Loan

In 2011, our client had refinanced this portfolio with a $75 million 5 year CMBS loan and a $70 million mezzanine loan, both of which had yield maintenance prepayment penalties.  By late 2014, this portfolio’s NOI had increased, and our client wanted to access money for PIPs while lowering their interest rate.  We convinced the mezz lender to waive their prepayment penalty and provide a new $170 million balance sheet loan to restructure the entire stack at a sub 9% debt yield.  We were able to eliminate a cash flow sweep and virtually any potential for cash management while sourcing $25 million for PIPs at a rate of L+495 bps.