Source: CRENews

Lone Star Wins Loans on Troubled Restaurant Operator

Lone Star Wins Loans on Troubled Restaurant Operator

February 25, 2005

By Orest Mandzy, Commercial Real Estate Direct Managing Editor
Lone Star Partners is said to have won the bidding for a pair of loans backed by 16 properties that are net leased to the operator of the Stuart Anderson's Black Angus chain of steakhouses.
The two loans were securitized in a pair of CMBS deals that were floated in 1998: Credit Suisse First
Boston Mortgage Securities Corp., 1998-C1 and 1998-C2.
The loans have a combined balance of $32.8 million and were marketed for sale by Mission Capital
Advisors, a New York loan-sales specialist.
It's not known how much Lone Star paid for the loans.
The properties backing the loans are operated by American Restaurant Group of Los Altos, Calif., which last September struck a deal with its secured lenders on a prepackaged Chapter 11 reorganization. The company has since lined up $30 million of debtor-in-possession financing from a unit of Wells Fargo that will allow it to remain open. Wells has committed to provide another $70 million of financing as well. As part of its restructuring, most of the company's debtholders have become equity owners.
The company owns and operates 93 restaurants, primarily in California, Arizona and Colorado, with annual sales of roughly $300 million.
According to Realpoint, the properties securing the loans in the two securitized transactions average
10,000 square feet. At least four of the properties had their leases rejected in the bankruptcy, according to the Horsham, Pa., research firm. The remainder, however, are still open.
Lone Star, meanwhile, is a seasoned investor in what otherwise would be considered an unusual asset:
the net-leased restaurant. The opportunistic investor in 2001 had acquired a 19.25 percent interest in

U.S. Restaurant Properties Inc., which owns or finances 847 chain-restaurant outlets.

Comments? E-mail Orest Mandzy, or call him at (215) 504-2860, Ext. 211.

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Source: CRENews

Mission Capital Markets for Sale $49Mln Hotel Loan

Mission Capital Markets for Sale $49Mln Hotel Loan

February 2, 2005

Commercial Real Estate Direct Staff Report
Mission Capital Advisors has launched an effort to sell a $48.9 million mortgage on a full-service hotel in
Walt Disney World.
The New York advisory firm expects to take offers on the performing loan on March 4.
Mission did not identify the property backing the loan, but it is believed to be the Grosvenor Resort, which was constructed as the Americana Dutch Resort in 1972, making it one of the first hotels to be developed in Disney World. The property has 626 rooms in two buildings of 19 and five floors, respectively. The larger of the two has interior-corridor units, while the smaller has corridors on its exterior.
The property sits on nearly 14 acres that is leased from Disney through 2049.
Because it was developed so early, it remains one of a few hotels that are within walking distance of most major downtown Disney attractions.
Last year, the property averaged 81 percent occupancy with an average daily rate of $77.88. It contains five food and beverage outlets, two outdoor swimming pools, two tennis courts and gift shop, as well as
19,000 square feet of meeting space and parking for 353 vehicles.
The loan that Mission is offering for sale was originated in 1990, but was restructured several times. The collateral property was performing solidly through 2000 and started slipping in 2001. After the 9/11
terrorist attacks, its operations – along with those of countless other hotels that rely on tourism – collapsed. So its owner, Grosvenor Orlando Associates, filed for bankruptcy. It emerged last August, having repaid all late fees on the loan.
The loan carries a rate that floats at 275 basis points above Libor and matures in 2010.
The loan sale is the latest in a string of transactions handled by Mission Capital. The company was founded nearly three years ago by former Carlton Group executives. And since then, it has handled the sale of some $5 billion of assets, largely residential loans. In addition, it has helped structure $1.2 billion of Fannie Mae securitizations.
Most recently, the company managed a $1 billion residential loan sale for a major bank.

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