HOSPALITITY FINANCING

Purchasing a hotel property is a very different from buying other commercial properties. Not only are there are no leases but there is usually a franchise. There is also a mamagement contract and the requirement for ongoing replacement of Furnature and soforth.

In addition to the usual due diligence there is often a change of ownership PIP (property improvement program) required by the franchisor. We have a lot of experience with hotel acquisitions and we can be of help to you in getting you deal done. We can include a PIP in the cost of buying a hotel property for einancing ,

At some point properties require a refinance. This may be because the existing mortgage is maturing, there is the need to pull cash out of a property or there is the need to fund a PIP. What ever the reason we have the experience and the knowledge to get the job done for you. Hotels are usually financed with CMBS Conduit loans. Fixed interest rate, 10 year term and non recourse.

We arrange construction financing in most markets around the country. We use both conventional and SBA. We like to structure conventional construction loans for 12 to 18 months followed by a mini-perm for up to three years. By doing that we can have a seasoned operating record for the property to take to market for the permanent loan.

SBA construction is done using the 7a or 504 program. If practical we encourage the advantages of the "Green" program. When necessary we can also place bridge loans and other temporary financing.