CHICAGO, March 17, 2022 /PRNewswire/ — Mag Mile Capital is pleased to announce Rushi Shah, Principal and CEO, Francisco Nacorda, SVP of Originations, and Prabhat Jayara, Vice President of Capital Markets recently arranged a total of $18,600,000 through two-year loans for three Ohio airport hotels negatively affected by the pandemic. The recently renovated properties were acquired with a short-term bridge loan that allows the sponsor to ramp up performance until ready for permanent financing. Mag Mile Capital is a boutique-sized firm that offers preferred access nationwide to high-leverage, non-recourse, commercial real estate bridge loans and permanent mortgages with cash out for hotels, self-storage, multifamily, industrial, retail, office, and other commercial real estate properties.
"Unfortunately, these corporate hotels were located in an airport submarket heavily impacted by a lack of business travelers due to the pandemic," said Rushi Shah. "Although renovations were complete, the properties just did not have time to ramp back up and support a permanent loan before the existing loan matured. So, we were asked to help. Using an established relationship with the existing lender, we provided certainty that the loan would be paid off, and secured a little more time for Mag Mile Capital to find a suitable lender. In one case, we were able to leverage our pre-existing relationship with Sponsor’s prior lender to negotiate a short term extension until we closed the new bridge loan."
Mag Mile Capital: SpringHill Suites, TownePlace Suites, and Courtyard by Marriott
• Address: 80 keys at 665 Taylor Road, and 94 keys at 695 Taylor Road, Columbus, Ohio, located near the Columbus Airport; 154 keys at 7345 Engle Road, Middleburg Heights, Ohio, located near the Cleveland Airport
• Total Loan Amount: $18,600,000
• Interest Rate: Floating rate loan with an interest rate cap
• Amortization: Interest only
• Loan Terms: 24 months with extension options
• Investor Type: Two Different Regional hotel owners and developers
• Closing Dates: December 20, 2021 and January 27, 2022
"The Cleveland transaction presented some definite time challenges, as it was a Ten-X auction deal with a tight deadline," said Francisco Nacorda. "But in the end, we were able to close the financing before the new deadline, structuring the loan in a positive way for all parties involved. With interest reserve for the next 12 months, no DSCR tests for the first 24 months, non-recourse, and a limited minimum interest period so the borrow can refinance into a cheaper permanent debt – just as soon as the properties begin to show renewed vigor and customer support."
"Courtyard was a acquired by Midwest Lodging Group," said Prabhat Jayara, "while the Springhill and Towneplace were refinanced for Helix Hospitality, both by same lender."
About Mag Mile Capital – Turning Relationships Into Closings Since 1991
Mag Mile Capital is a full-service commercial real estate mortgage banking firm, headquartered in Chicago with offices in New York, Massachusetts, Connecticut, Florida, Texas, Michigan, Colorado, and Nevada. Mag Mile Capital is a national platform comprised of talented capital markets advisors with extensive experience in real estate debt placement and equity arrangement throughout the full capital stack and across all major asset classes nationwide.
Offering preferred access to premier structured debt and equity advisory solutions and placement for real estate investors, developers, and entrepreneurs, Mag Mile Capital leverages a wide variety of lending relationships and equity capital connections as a leading American real estate mortgage banking firm. Learn more at: http://www.MagMileCapital.com/.
Samantha Rivera, Operations Coordinator
Mag Mile Capital
SOURCE Mag Mile Capital