
January 2025
Transaction Description:
George Smith Partners, along with CapMoon, secured $23,550,000 in proceeds for the permanent refinance of a 232-key hotel in Fort Worth, Texas. The Lender provided proceeds of 40% of value and underwrote to a 16% stabilized debt yield. The property had undergone several flag changes and ultimately opened as a Hilton-flagged hotel in mid-2023 and has finally hit its stride in terms of performance.
Several challenges were encountered when discussing the transaction with capital providers, particularly its lack of history under the Hilton flag, as well as the fact that it had just begun to stabilize in terms of operating performance. GSP was able to source a lender that was able to close the loan, with the intent of securitizing it in two months, in an uncertain B-piece buyer market.
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