Mag Mile Capital arranges $18.6 million for three Marriott-branded Ohio airport hotels
CHICAGO, March 17, 2022 /PRNewswire/ — Mag Mile Capital is pleased to announce Rushi ShahDirector and CEO, Francisco NacordaSVP of Originations, and Prabhat Jayara, Vice President of Capital Markets recently held a total of $18,600,000 through two-year loans for three Ohio airport hotels negatively affected by the pandemic. The recently refurbished properties were acquired through a short-term bridge loan which allows the sponsor to ramp up performance until it is ready for permanent financing. Mag Mile Capital is a boutique-sized company that provides nationwide preferred access to highly leveraged, non-recourse commercial real estate bridge loans and permanent mortgages with drawdowns for hotels, l self-storage, multi-family, industrial, commercial, office and other commercial real estate.
“Unfortunately, these business hotels were located in an airport submarket heavily impacted by a lack of business travelers due to the pandemic,” said Rushi Shah. “Although the renovations have been completed, the properties simply haven’t had time to get back up and running and support a permanent loan before the existing loan matures, so we were asked to help. Using a established relationship with the existing lender, we ensured that the loan would be repaid and guaranteed Mag Mile Capital some extra time to find a suitable lender.In one case, we were able to leverage our pre-existing relationship with the previous lender from the sponsor to negotiate a short-term extension until we close the new bridge loan.”
Mag Mile Capital: SpringHill Suites, TownePlace Suites and Courtyard by Marriott
• Address: 80 keys at 665 Taylor Road and 94 keys at 695 Taylor Road, Columbus, Ohio, located near Columbus Airport; 154 keys at 7345 Engle Road, Middleburg Heights, Ohiolocated near Cleveland Airport
• Total loan amount: $18,600,000
• Interest rate: variable rate loan with an interest rate cap
• Amortization: interest only
• Loan terms: 24 months with extension options
• Type of investor: Two different regional hotel owners and developers
• Closing dates: December 20, 2021 and January 27, 2022
“The Cleveland transaction presented specific timing challenges as it was a Ten-X auction deal with a tight deadline,” said Francisco Nacorda. “But in the end, we were able to close the financing before the new maturity, structuring the loan in a positive way for all parties involved. With interest reserve for the next 12 months, no DSCR tests for the first 24 months, no – recourse, and a limited minimum interest period so that the loan can refinance into cheaper permanent debt – as soon as the properties begin to show renewed vigor and customer support.”
“Courtyard was acquired by Midwest Lodging Group,” Prabhat Jayara said, “while Springhill and Towneplace were refinanced for Helix Hospitality, both from the same lender.”
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About Mag Mile Capital – Turning Relationships Into Closings Since 1991
Mag Mile Capital is a full-service commercial real estate mortgage banking company, headquartered in Chicago with offices at new York, Massachusetts, Connecticut, Florida, Texas, Michigan, Coloradoand Nevada. Mag Mile Capital is a national platform comprised of talented capital markets advisors with extensive experience in real estate debt placement and equity arrangement across the capital stack and in all major asset classes. nationally active.
Offering preferred access to best-in-class structured debt and equity advisory solutions and investments for real estate investors, developers and entrepreneurs, Mag Mile Capital operates a wide variety of lending and equity relationships in as America’s leading mortgage banking company. Learn more about: http://www.MagMileCapital.com/.
Samantha RiveraOperations Coordinator
Mag Mile Capital
SOURCE Mag Mile Capital