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Cash-Out Refinance with LifeCo for Unflagged Boutique Hotel; Tucson, AZ

Rate: 4.59% Fixed for 5 Years
Term: 15 Years (5+5+5)
Amortization: 27 Years
LTV: <40%
Guaranty: Partial Recourse

Transaction Description:

George Smith Partners secured permanent financing for an unflagged, 90-key, boutique art hotel in Tucson, AZ. The Sponsor acquired the Property in 2017, and completed a full renovation and rebrand in 2018, primarily with cash. The Hotel performed extremely well prior to the pandemic. While revenue and NOI declined, along with most hospitality assets during that time, the Property has since recovered to and exceeded pre-pandemic levels. Despite the Property being unflagged and located outside downtown Tucson, GSP was able to leverage its strong lender relationships to source CMBS and Life Insurance Company quotes. The Sponsor ultimately chose a LifeCo lender who offered a combination of low rate, longer amortization, prepayment flexibility, and potential to increase proceeds during the loan term.

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