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$19,000,000 CMBS Financing for Select-Service Hotel; Southern California

Rate: 3.73%
Term: 10 Years
Amortization: Full Term Interest Only
Recourse: Non-Recourse

Transaction Description:

George Smith Partners successfully placed the $19,000,000 cash out CMBS loan to fund the refinancing of a select service hotel in Southern California. The 10-year fixed rate loan locked below 3.75%, fully interest only. The financing was successful despite significant headwinds on hotel operations due to the pandemic, but GSP was able to source a creative CMBS lender that not only sized the loan based off of 2019 performance, but also allowed for a two-year holiday from any debt yield test covenants. With California and the country as a whole reopening following the global pandemic, and best-in-class ownership and management in place, GSP was able to build a story around recovery to achieve favorable terms in a challenging environment.

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