Search
 

128-Key Hotel Lands $9M Refinance

RICHARDSON, TX-A partnership trio gets 75% loan-to-value financing at a 7.2% fixed-rate interest after working nearly two years to improve margins at Hampton Inn Dallas.

By Connie Gore | Updated on August 19, 2008

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.