Transaction Overview
George Smith Partners arranged the $4,950,000 refinance of a 72 key limited service hotel in Central California. The borrower built the subject property in 2002 and was seeking new debt to replace his higher yielding coupon, yet requested a loan that would allow for future flexibility. There was a small return of equity funded through this refinance. Located in a high barrier to entry, the subject is surrounded by an abundance of walkable retail and restaurants. GSP identified a portfolio capital provider who understands hospitality and was comfortable with the historically consistent cash flow despite the secondary location. Fixed for five years at 3.85% before floating over Prime for the remaining two years, the 25 year amortized loan steps-down from 5%.
