The Resort at Paws Up

Location: Greenough, Montana

Size: $15,750,000

Challenge: Off-the-Run Asset

Type: Permanent Loan

This property was purchased in 1997 and transformed from a cattle ranch into a world-class resort.  With a total cost basis in excess of $35 million, our client wanted a low leverage permanent loan for estate planning purposes.  The resort had only recently become profitable, as the owners led the “glamping” movement.  Besides being an independent hotel in a remote area, 50% of rooms are canvas tents and less than 50% of the revenue comes from lodging.  We completely de-risked this loan by identifying a lender willing to tour the resort prior to issuing a term sheet and then re-visiting with a rating agency to ensure treatment as a conventional lodging asset.