» $19 Million - Hotel, Restaurant, Office Portfolio - New Jersey
Posted by Loan Closed
Avatar was asked to submit a proposal for the $19,000,000 refinance and renovation of a $28,000,000 real estate portfolio consisting of three hotels, three restaurants and an office building in New Jersey.
The sponsor's existing loan was set to mature within 30 days. Conventional refinancing had been unsuccessful because two flagged hotels were in need of separate multimillion-dollar property improvement plans (PIPs). These PIPs had not yet been approved by either of the hotel's franchisors nor was a contractor bid in place, leaving the PIP budget as an estimate, yet required as part of Avatar's loan. In addition, the sponsor wanted maximum flexibility with regard to deed releases in the event part of the property was sold.
Avatar provided a term sheet within 24 hours of the initial request and was ultimately selected over competing private lenders for our team’s proven ability to close complex loan transactions quickly and our dedication to closing this deal within the 30-day window available before the sponsor’s existing loan matured.
With many moving parts, a tight timeline, and a number of obstacles that required creative solutions, Avatar was able to close the loan within the time frame needed and provide the sponsor with the capital required to fund property improvement plans for the two hotels and meet all business needs.
- Loan Amount: $19,000,000
- Broker’s Commission: $190,000
- LTV: 58%
- Interest Rate: 8.5%
- Term: 36 months