Hotel Construction Loan | 53,000,000: Non-Recourse Construction Financing for the Development & Conversion of a 32 Key Boutique Hotel into a 177 Key Marriott Autograph Collection Hotel in Scottsdale, AZ

Rate: 1 Mo. LIBOR + 8.95%
Term: 3+1+1
Amortization: Interest Only
LTC: 64.5% (This included an allowance of imputed equity, which represented a 25% increase in the Sponsor’s basis.
Guarantee: Non-recourse with standard bad-boy carve-outs

Transaction Description:

George Smith Partners secured a $53,000,000 non-recourse construction loan for the expansion of a 32-key boutique lifestyle resort into a 177-Key Marriott Autograph Collection in Scottsdale, Arizona. The construction financing provided the Borrower with sufficient funds to not only expand the Property by adding 145-keys but also to repay the existing lender in full and cover all closing and financing costs.

GSP sourced a lender who understood the intrinsic value of the Property’s strategic location along with the development plans of the expansion. The three year floating rate note, priced at 8.95% + 1 Month LIBOR was sized to 64.5% of project costs. (This included an allowance of imputed equity, which represented a 25% increase in the Sponsor’s basis).

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