CHC closes $8.5 million loan
CHATHAM, NJ — David Turley, Janet Proscia and Jeffrey Pacailler recently secured an $8.5 million CMBS loan for a Hampton Inn & Suites in a secondary Tennessee market. The loan amount represents the client’s entire cost basis in the property.
CHC successfully obtained a loan at 65% LTV on a 10/25. The interest rate was locked in the low 4%’s at a spread of 195bps over the 10-year Swap rate. CHC was also able to negotiate a full wavier of cash management for DSCR, a very attractive feature for the client.
David Turley said, “This was a challenging assignment even at 65% LTV given the cash out and the property’s limited operating history. However, CHC was able to successfully communicate the strengths of the Property which were backed up by impressive performance metrics - occupancy, ADR and RevPAR - within its comp set.”
“We ran a thorough marketing process,” added Janet Proscia, “and asked lenders to bid on both the economic and legal terms of the transaction. The client was very pleased to secure not just an attractive rate but also flexible terms that will make the loan easy to live with over the next 10 years.”