PHILADELPHIA, PA—Versant Commercial Brokerage has successfully recapitalized the Hampton Inn – Philadelphia Airport located in Philadelphia, PA. Versant assisted the tenant-in-common investors by originating the new financing, purchasing the TIC interests of those who needed to exit the investment, and utilizing Internal Revenue Code Section 721 to roll up the TIC structure into an LLC on a tax-deferred basis.
Versant says it completed the complex transaction in 180 days. The new debt of $17.8 million has a fixed rate of interest of 4.79 percent for ten years. Monthly distributions to the investors will increase by approximately 50 percent. As part of the restructuring, the hotel will be undergoing a $3.25 million property improvement plan.
"We are extremely pleased with this result," says Matt Mueller, president of Versant. "We cashed out the TIC owners who needed to sell, and helped the other owners stay in the property on a tax deferred basis with a hefty increase to their distributions."
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
