CARLSBAD, CA—Debt broker Meridian Capital Group has negotiated a $100 million bridge loan for the refinance of a six-property hotel portfolio located in Florida, Texas, North Carolina and Minnesota, on behalf of a Los Angeles-based private equity fund.
The three-year initial loan term, provided by a New York-based debt fund, features a floating-rate, interest-only payments for the full term, and two one-year extension options. This transaction was negotiated by Meridian managing director, Seth Grossman, and vice president, Sarah Kuebler, who are both based in the company's Carlsbad office. Grossman and Kuebler also arranged the acquisition financing for the same portfolio in 2012.
The portfolio is composed of the following six hotels: DoubleTree Suites by Hilton Hotel Tampa Bay located at 3050 North Rocky Point Drive West in Tampa, FL; Embassy Suites Boca Raton located at 661 NW 53rd Street in Boca Raton, FL; Sheraton Suites Fort Lauderdale at Cypress Creek located at 555 NW 62nd Street in Fort Lauderdale; Holiday Inn San Antonio located at 77 NE Loop 410 in San Antonio; DoubleTree Suites by Hilton Hotel Raleigh – Durham located at 2515 Meridian Parkway in Durham, N.C.; and Embassy Suites St. Paul located at 175 East 10th Street in St. Paul, MN.
“Based largely on the sponsor's strength, track-record, the improving market and specific hotel conditions, we were successful reaching our client's objectives. We refinanced their acquisition loan with an increase in loan proceeds while simultaneously lowering the interest rate several hundred basis points and maintaining ample flexibility for the portfolio going forward,” said Grossman.
Founded in 1991, Meridian Capital Group says it is America's most active debt broker and one of the nation's leading commercial real estate finance advisory firms. In 2014, Meridian closed 3,480 loans totaling more than $30 billion in transaction volume with 175 unique lenders, equating to $120 million per business day. Meridian arranges financing for many of the world's leading real estate investors and developers and the company's expansive platform has specialized practices for a broad array of property types including office, retail, multifamily, hotel, mixed-use, industrial, healthcare, student housing and self-storage properties. Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Florida and California.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
