Transaction Overview
David Stepanchak and Loren Bedolla successfully structured and placed the 75% LTV non-recourse bridge refinance of two limited service hotels. The loan is secured by two flagged Atlanta hotels with 254 total keys. During the economic downturn, hospitality struggled nationally and has only started their recovery over the last two years. GSP targeted a capital provider who was not only knowledgeable about the location and marketplace, but also comfortable with the month-over-month improving performance of both assets and the Sponsor’s operating experience. Both hotels outperformed cash flow expectations during the underwriting process and allowed for an increase in the actual funded loan. GSP vetted the business risk exposure upfront with the capital provider and worked to structure objective criteria that satisfied both the Sponsor and Lender. The non-recourse floating rate loan is floored at 6.0%, sized to a 75% LTV, 9.0% debt yield and 1.15 dcr amortized over 30 years.
