Terrace Capital, Inc. Announces: Non-Recourse Senior Mortgage Financing- $7MM – Baymont Inn & Suites – Battle Creek & Kalamazoo, MI.
New York, NY, October 30, 2013 --(PR.com
)-- The portfolio of three properties consisted of 361 rooms located at, 2203 South 11th Street & 6420 Cracker Barrel Boulevard in Kalamazoo, MI and 4725 Beckley Road in Battle Creek, MI.
The proceeds of this $7MM, 65% loan-to-value non-recourse loan were used by the borrower, A&M Hospitality, for the refinance of recourse, local bank renovation debt. The new, non-recourse senior debt had a 10-year fixed term and a 25 year amortization schedule and contained a substantial cash out. A&M Hospitality’s president, Akram Namou, owns and operates approximately 70 flagged hotel properties in Michigan and Ohio. The non-recourse, permanent financing will allow the firm to cut their contingent liabilities and continue to draw on lines of credit for new hotel development loans.
A managing director at Terrace Capital acknowledged that hospitality financing for the economy brands of Wyndham (Ramada, Knights Inn, Days Inn, Super 8, Travel Lodge and Howard Johnson) can be extremely challenging in the current environment, particularly in the state of Michigan, though Terrace was able to structure a loan for these well-performing properties at a competitive rate, slightly above 5%. Terrace Capital’s success in this arena has made it a leader in hotel mortgage financing in the last two years and a valued partner for growth in the hospitality space.
About Terrace Capital
Terrace Capital focuses on non-recourse, permanent loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
The company recently re-started its small balance bridge lending program, which focuses on non-bank lending opportunities in the $500M to $5MM range on residential and commercial properties in all 50 states.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.