The new capital for the 2.1-acre property at 1577 Gateway Blvd. retired a $6-million loan from a local bank that was originated for the 2006 acquisition by three partners, according to Peter Berk, president of New York City-based AFT Hotel Finance Group. "They bought an under-performing property and through good management they created value. They brought in a good sales manager and increased occupancy," he says.

Berk tells GlobeSt.com that the hotel, now averaging 80% occupancy, drew offers from three lenders in a debt auction process with the best terms coming from a US-based portfolio lender. "It was a combination of the highest loan proceeds and the lowest interest rate," he adds, citing the loan was placed in a 60-day start to finish, sans re-trading.

Berks says today's lending climate didn't create any undue hurdles for the debt auction, pointing out that loans under $10 million are better positioned for success. "I think the deals that are having trouble are $30 million and up," he says. "In the $10-million range, that's an amount banks can bite off and still syndicate them."