$11,400,000 Construction Financing for a 100-Key Extended Stay Hotel Development in a Western State

Transaction Description: 

George Smith Partners successfully secured $11,400,000 in construction financing for a ground up 100-key extended stay hotel development project in a Western State. The Sponsor, a best-in-class developer and manager, specializes in this niche hospitality sector which acts as a hybrid asset class, one that takes the best from both the multi-family and hospitality sectors.                                                                                      

To help facilitate a nationwide portfolio expansion, GSP, through their expertise in ground up development financing and strong relationships with a wide range of lenders, were able to negotiate favorable terms for the client. The loan was priced floating at Prime +0.50%.                   

Building upon the Sponsor’s hospitality development experience and successful track record, the GSP team effectively delivered favorable debt financing which aligned with sponsorship expectations and growth strategy allowing them to expand to a new market.  

Rate: Floating Prime + 0.50% 

Term: 24 months full term interest only 

LTC: 65% 

Guaranty: Partial-Recourse 

Prepayment Penalty: None 

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