128-Key Hotel Lands $9M Refinance

RICHARDSON, TX-A local partnership has secured a $9-million refinance of the 128-suite Hampton Inn Dallas as it nears the second anniversary of its hold. The 75% loan-to-value financing carries a three-year term, 7.2% fixed-rate interest and 25-year amortization.

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.