Transaction Overview
George Smith Partners arranged $40,000,000 in non-recourse, cash-out bridge financing for a 180-key Radisson RED hotel in Portland, Oregon. The bridge facility allowed the Sponsor to pay off its construction loan, return capital to investors and provided additional runway for the hotel to ramp-up. The hotel occupies the first nine floors of a 19-story, Class-A, mixed-use high-rise tower that was delivered in Q4 2018. The remaining 10 floors are Class-A office space leased out at some of the highest rental rates in the Portland MSA.
GSP was able to leverage market interest to secure the most competitive terms available by focusing attention on the strong sponsorship and its long history of development and investment in the local Portland market. The location of the Property is adjacent to Portland State University and walking distance to the heart of Downtown Portland. The Property offers uniqueness of a select service hotel in a Class-A high-rise. The selected Capital Provider was able to recognize the Property’s intrinsic value and execute in a timely manner. The 75% LTV, non-recourse execution was fixed at a 7.75% interest rate and included a sizable cash-out. The Sponsor concurrently sold the office portion to a core, trophy office buyer through a separate sale.
