Blacksburg, VA & Silver Spring, MD — Greysteel has arranged two separate transactions on behalf of Newport Hospitality Group:
In the first transaction, Greysteel worked on behalf of the sponsor, Newport Hospitality Group to secure a 5-year, fixed-rate loan through a regional bank. Greysteel created a competitive marketing process, bringing in several local, regional, and national lenders who provided seven term sheets throughout our process. This enabled our client to weigh the various loan options thoughtfully while pushing each lender to provide the most competitive structure. The 5-year fixed term has a rate of 6.13% on a 25-year amortization with a 2-1-1 prepayment penalty. The hospitality industry has recovered rapidly in the past few years, and this asset was able to show consistent year-over-year growth in its performance to achieve this accretive loan structure.
The sponsors built the hotel and have owned and operated it since 2017. It is situated directly adjacent to Virginia Tech University, providing a consistent flow of guests who require more extended stays while visiting the university. Blacksburg also allows access to the Blue Ridge Mountains, several seasonal festivals, a growing winery and craft beer scene, and several incredible wedding venues.
Greysteel director Stephen Haase secured the bank loan on behalf of the sponsor.
“Newport Hospitality Group is a top-tier hotel management and development company, and working with their team on this opportunity was extremely rewarding. The hospitality industry continues to be an attractive area for lenders, which was shown in the quantity of interest brought in on this transaction. We continue to see activity in the capital markets for hotels and expect a more stable lending environment in 2024, further bolstering loan options,” said Haase.
In the second transaction, Greysteel has arranged the sale of Longfellow Terrace, a 41-unit multifamily property in Washington, DC senior associate Michael Murray, senior managing director Kyle Tangney, managing director Herb Schwat and senior director Nigel Crayton who are based in the company’s Washington Office, represented the seller Longfellow Terrace LLC.
Longfellow Terrace is a 41-unit community located immediately south of Downtown Silver Spring, MD, in the Northwest DC neighborhood of North Petworth.
The purchaser worked with the residents prior to closing to plan to implement a much-needed renovation of the property while preserving affordable housing. Existing and future residents will take advantage of upgraded building systems, in-unit amenities, and enhanced security systems.
“This was a fantastic way to end 2023, especially given the challenges presented by the volatility in the capital markets this past year”, said senior associate Michael Murray. “With rates moving more than 100bps from contract execution to close, we were pleased to have been able to preserve the full value of the contract price for our client, the seller, by efficiently coordinating and effectively communicating with transaction stakeholders.”