Source: Real Estate Finance & Investment

Excel Group has secured $7.5m of mezzanine financing to help recapitalize two Hilton-branded limited sercie hotels in Sarasota, FL. Mission Capital arranged the financing.

Excel snags mezzanine loan for Florida hotel recap

January 28, 2016 By Sherry Hsieh
Excel Group has secured $7.5m of mezzanine financing to help recapitalize two Hilton-branded limited-service hotels in Sarasota, Fla. The mezzanine financing sits behind an existing $17m securitized first mortgage. A portion of proceeds was used to refinance $2m of existing subordinate debt on the Hilton Garden Inn Sarasota and Hampton Inn Sarasota. Both debt pieces terminate in 2018,REFI has learned. Mission Capital Advisors arranged the financing.

The transaction allowed Excel to refinance the subordinate debt and return sponsor capital while avoiding defeasance on the senior loan. “The new [mezzanine loan] is structured to co-terminate with the senior in 2018 and carries a very competitive rate for this asset class in this market,” said Tom Hall, a managing director in the sales and trading group at Mission. “There were not a lot of mezzanine lenders in
the sub-$10m [space who could] meet the requirement of a qualified mezzanine
lender per the senior loan documents for this transaction,” he added.

The requirements were challenging. First, the lender needed to focus on smaller mezzanine loans but have deep enough pockets to meet the requirements of the special servicer on the existing CMBS mortgage. “CMBS loan documents generally restrict who qualifies as a mezzanine lender. To qualify, the lender has to be well- capitalized and has to [be able to] demonstrate that they are capable of taking over the borrower if needed,” explained Ari Hirt, a managing director in the debt & equity finance group at Mission. Hirt declined to name the lender, but noted it is a private investment fund that provides mezzanine and bridge financing.

The financing marks the second transaction where Mission has secured mezzanine
debt above existing securitized senior debt. But given the anticipated wall of CMBS maturities and the unprecedented low long-term fixed rate environment (recently closed 10-year fixed rate products are in the plus or minus 4% range), Hirt believes more transactions of this type will arise as borrowers seek more leverage on properties.

Excel acquired the 115-room Hilton Garden and 121-room Hampton Inn for $11m and $9m, respectively in 2013. The Washington D.C.-based private equity firm owns and asset manages branded select service hotels across the U.S.

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Source: Tampa Bay Business Journal

Excel Group has secured $7.5m of mezzanine financing to help recapitalize two Hilton-branded limited sercie hotels in Sarasota, FL. Mission Capital arranged the financing.

Exclusive: Mission Capital arranges financing for recap of two Sarasota hotels

January 22, 2016
By Frances McMorris

Two Hilton-branded hotels in Sarasota are being recapitalized with $7.5 million in financing arranged by Mission Capital Advisors on behalf of private equity firm Excel Group.

The properties at the center of the financing are the Hilton Garden Inn Sarasota and Hampton Inn Sarasota. Mission Capital Advisors’ Debt & Equity Finance Group arranged the $7.5 million of cash-out mezzanine financing behind an existing $17 million securitized first mortgage on behalf of Excel Group.

The Mission Capital team of Tom Hall, Steven Buchwald and Eugene Shevaldin represented the sponsor on an exclusive basis in the refinancing of $2 million of existing subordinate debt on the two-property, 236-key, limited-service hotel portfolio, which was acquired in December 2013. At that time, Excel Group announced its acquisition of the 121-room Hampton Inn for $9 million, the 115- room Hilton Garden Inn for $11 million, and an empty land parcel, for a total of $20 million for the portfolio. The land parcel had been previously valued at $1.4 million.

Washington, D.C.-based Excel Group “increased the net operating income drastically
within the two years that they owned it,” said Buchwald, a managing director with Mission Capital. “For these two hotels, they were able to increase NOI by more than
50 percent since acquisition, which is extraordinary,” added Hall, also a managing
director for Mission Capital. He attributed that growth in NOI “to Excel’s aggressive

asset management strategies leveraging their hospitality knowledge, revenue management, and operational efficiencies.”
The attractiveness of the Tampa/St. Pete/Sarasota travel market, the ongoing economic recovery, “coupled with the overall hotel market recovery increased the value of these two assets,” Hall said. Hotels have “been a hot product type over the last four years; not only in terms of new supply but also from owners upgrading lower quality hotels” to higher quality properties. Furthermore, Hall said, “demand for limited-service lodging in Sarasota has grown at an aggressive rate since 2009.” Those factors led to the refinancing, he said.
But, there were also some challenges, Buchwald said. The complex servicer approval process, the smaller size of the deal and “the fact that it was a cash-out refinancing” all proved somewhat challenging, he said. Because the mezzanine financing was below $10 million, Mission Capital had a more select group of capital providers who were interested and capable, Buchwald noted.

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Mission Capital has secured a $10.23 million loan for Hotel Aspen, a boutique hotel located at the entrance to Aspen, Colorado’s bustling downtown.

Media Contact: Amanda Ferraro Beckerman

aferraro@beckermanpr.com

201-649-1186

FOR IMMEDIATE RELEASE

Mission Capital Advisors Arranges $10.23 Million Debt Financing for

Hotel Aspen in Colorado

National real estate debt and equity brokerage firm secures financing on behalf of project sponsor HayMax Capital

ASPEN, Colo. (Jan. 21, 2016) — Mission Capital has secured a $10.23 million loan for Hotel Aspen, a boutique hotel located at the entrance to Aspen, Colorado’s bustling downtown. The loan was arranged by Jordan Ray, Ari Hirt, Steven Buchwald and Jamie Matheny of national real estate debt and equity brokerage firm Mission Capital Advisors. The loan was provided by a regional commercial bank.

“We were able to produce a number of competitive offers from debt funds and banks,” said Ray. “Ultimately, we arranged a great non–recourse, 10-year fixed-rate pre-payable loan from a regional bank at a very low rate, retiring the property’s existing loan and returning capital to
the sponsor.”
The 45-key hotel is a premier hospitality property in Aspen, one of the most popular winter resort destinations in the country. The hotel offers visitors a range of amenities including a heated outdoor swimming pool and hot tub and a sun deck with a fire pit.
The borrower is HayMax Capital, an Aspen-based real estate development firm focused on boutique hotels and development projects.
Mission Capital is extremely active in arranging financing for hotel, office, retail, multifamily and industrial properties across the country. The firm’s recent hospitality transactions include securing $60 million in construction financing for a hotel in downtown Los Angeles; arranging
$31.5 million in acquisition financing for a university-oriented lifestyle hotel in Berkeley; and facilitating $19 million in acquisition and renovation financing for the conversion of a Miami Beach residential property to hospitality use.

About Mission Capital Advisors

Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Al. The firm delivers value to its clients through an integrated platform of advisory and

transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.

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Mission Capital Advisors’ Debt & Equity Finance Group has arranged $7.5 million of cash out mezzanine financing behind an existing $17 million securitized first mortgage on behalf of Excel Group in order to recapitalize two Hilton branded limited-service hotels in Sarasota, Florida.

Media Contact: Amanda Ferraro Beckerman

aferraro@beckermanpr.com
201-649-1186

FOR IMMEDIATE RELEASE

Mission Capital Advisors Arranges $7.5M in Mezzanine Financing for

Hilton Garden Inn and Hampton Inn in Sarasota

Extraordinary Subordinate Debt Financing Demonstrates Strength of Mission Capital Execution

SARASOTA, Fla. (Jan. 13, 2016) —Mission Capital Advisors’ Debt & Equity Finance Group has arranged

$7.5 million of cash out mezzanine financing behind an existing $17 million securitized first mortgage on behalf of Excel Group in order to recapitalize two Hilton branded limited-service hotels in Sarasota, Florida.
The Mission Capital team of Tom Hall, Steven Buchwald and Eugene Shevaldin represented the sponsor on an exclusive basis in the refinancing of $2 million of existing subordinate debt on a two-property,
236-key, limited-service hotel portfolio purchased in 2013 comprised of the Hilton Garden Inn Sarasota and Hampton Inn Sarasota.
“Excel Group has impressively executed on a disciplined investment philosophy since inception,” Hall said. “For these two hotels, they were able to increase NOI (net operating income) by more than 50 percent since acquisition, which is extraordinary. Part of this was the general market rebound, but most of the increase is attributable to Excel’s aggressive asset management strategies leveraging their hospitality knowledge, revenue management, and operational efficiencies.”
There has been a tremendous amount of competition amongst mezzanine lenders in the past year, particularly for cash flowing assets. Targeted funds have been raised to take advantage of still moderate leverage from traditional senior debt lenders, an anticipated wall of CMBS maturities, and a general desire by borrowers to push proceeds on value-add acquisitions and refinances. Most asset classes are in consideration, but lenders have to do their homework on secondary and tertiary markets, particularly in hospitality.
“Demand for limited-service lodging in Sarasota has grown at an aggressive 17 percent annual compounded basis since 2009,” Hall added. “We were able to leverage our deep knowledge of the hospitality market and strong relationships with capital providers to obtain a very attractive financing package for the sponsor.”
Excel Group is a Washington, D.C. based private equity firm that owns and asset manages branded, select service hotels in high-growth markets across the U.S. Focused on disciplined, cycle-appropriate hotel real estate acquisitions and asset management, the firm specializes in value-add hotel and hotel debt acquisitions.
Mission Capital Advisors is extremely active in arranging financing for hotel, office, multifamily, retail, industrial and self-storage properties across the country. The firm’s recent hospitality transactions include securing $60 million in construction financing for a hotel in downtown Los Angeles; arranging
$31.5 million in acquisition financing for a university-oriented lifestyle hotel in Berkeley; and placing a
$10.23 million bridge loan on a boutique hotel in Aspen.

About Mission Capital Advisors

Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Al. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information,
visit www.www.missioncap.com.

Download icon PDF File 340.58 KB Download
Source: RE Business Online

Mission Capital has arranged a $24.5 million loan for an office building in Stamford, CT.

Mission Capital Advisors Arranges $24.5M Loan for Office Building in Connecticut

January 11, 2016 By Amy Works

The ownership recently upgraded and repositioned the 191,000-square-foot office

property located at 9 W. Broad St. in Stamford.

STAMFORD, CONN. — Mission Capital Advisors has arranged a $24.5 million loan for an office building located 9 W. Broad St. in Stamford. The borrower was a joint venture between certain funds managed by Westport Capital Partners and Forstone Capital. The 191,000-square-foot property was recently repositioned and upgraded by the ownership, which acquired the nearly vacant property in 2013. The property now features a ground-floor cafeteria, fitness center, conference rooms, lobbies and common areas. Additionally, the building features 540 on-site parking spaces and a shuttle service to the Stamford Transportation Center. Jordan Ray, Ari Hirt, Steven Buchwald and Lexington Henn of Mission Capital represented the borrower in the financing

Download icon PDF File 377.89 KB Download
Source: Bisnow

Mission Capital Advisors Managing Director Ari Hirt on Capital Markets.

3 TOP EXECS TELL US WHAT'S IN THEIR CRYSTAL BALLS FOR 2016

January 8, 2016 By Scott Klocksin

Mission Capital Advisors Managing Director Ari Hirt On Capital Markets

2016 will be another strong year for New York real estate. There is a tremendous amount of capital available to invest, and New York is still viewed as one of the most attractive and safest markets in the world due to high barriers to entry, the stable and growing population, increased tourism, and its position as the financial capital
of the US.

On the other hand, we can also expect to see some conservatism on the part of banks and other lenders for ground-up construction due to supply concerns. However, newer non-bank lenders entering the market could fill that gap. Limited availability of ground-up construction financing will keep supply in check.

New York City should see an increase in the number of refinances of 2006 vintage CMBS deals. Interest rates and loan spreads have widened due to recent FOMC actions and anticipated actions later in 2016; however, rates are still relatively low historically. Deals that were on the cusp for refinance could be stressed with the uptick in rates. However, the plethora of mezz/sub-debt capital out there should bridge the gap for most deals.

Download icon PDF File 732.84 KB Download
Source: Western Real Estate Business

AJ Capital has created a new hotel chain that caters specifically to the college and university markets.

AN EDUCATION IN HOSPITALITY

AJ Capital has created a new hotel chain that caters speci cally to the college and university markets.

By Nellie Day

here are many reasons people stay at hotels: vacations, business meetings, visiting family and friends. The latter category is usually associated with holiday get-togethers where loved ones want to be close, but due to time, space or patience con- straints, many out-of-towners don’t want to be that close. There are plenty of other reasons why family choose WR FRQJUHJDWH DURXQG VSHFLÀF XQL- versities as well: college visits, help- ing their children move into a dorm, graduations, alumni gatherings and reunions, weekend quality bonding
time and sporting events.
It is this market that AJ Capital be- lieves is underserved. So the Chicago- EDVHG ÀUP GLG VRPHWKLQJ DERXW WKDW.

,W FUHDWHG WKH QDWLRQ·V ÀUVW KRWHO EUDQG that caters exclusively to college- and university-anchored markets.
“In most markets, the hospitality RHULQJV DUH GRPLQDWHG E FRRNLH- cutter, limited-service hotels, often lo- cated on the outskirts of town,” says Ben Gottlieb, AJ Capital’s vice presi- dent of acquisitions. “When visiting D XQLYHUVLW, D KRWHO LV RIWHQ WKH ÀUVW and last place that one sees in a given town. We saw an underserved niche and capitalized on a tremendous op- portunity to improve this sector by curating a hospitality experience wor- thy of these unique communities.”
And, thus, the Graduate Hotel chain was born. The chain, which launched in 2014, now has 1,355 keys in nine university-anchored markets across the country. AJ Capital’s most recent acquisition is the 144-room Hotel Du- rant in Berkeley, Calif., which it pur- chased for an undisclosed sum this past September.

Photo credit: Christian Horan Photography

AJ Capital converted the Twin Palms Hotel into the Graduate Tempe hotel

in September 2014. The hotel sits across from the Arizona State University campus in Tempe, Ariz.

GUESTS LOVE AMENITIES: THE SHIFT IN DEMAND FROM SELECT-SERVICE TO FULL-SERVICE HOTELS

While certain companies like AJ Capital explore niches within the hospitality market, others point to overarching trends that may impact the general types of products delivered out West.

The hospitality market has made a true comeback over the past several years as a result of the improving post- recession economy. Business trips are more common, and families and couples are once again traveling for pleasure. To keep up with the increased demand, the hospitality construction and development sectors have responded, add- ing various properties, many of which are select-service hotels in strategic locations.
While this rapid growth has positioned the hospitality sector well, there are signs the market is imminently chang- ing — and that the strategy behind hospitality construction and development must, and will, change with it. The improvements in the economy have driven increased demand for beds and amenities. That same economic upturn has also boosted land and construction prices, ultimately increasing the cost of hotel development. While there is still demand for additional hotel rooms in some markets, others are showing signs of saturation. Hospitality profession- als will need to address both the increased cost of construction and market saturation – and provide a truly unique product — if they are to succeed and compete in the changing marketplace.
Today’s hospitality economy is driven by the consumers’ desire to have a lifestyle experience at a property, while
Like its other Graduate Hotel con- versions, AJ Capital plans to reposi- tion, rebrand and renovate the prop- erty to make it more reminiscent of the community it calls home. Gott- lieb is quick to note, however, that the renovations are not meant to make the property look like a dormitory or frat house.

“While Graduate is a brand, we pre- fer to look at it as a collection of locally centric boutique ho- tels,” he says. “By design, each Gradu- ate has a distinctly GLHUHQW DHVWKHWLF
feeling a connection to the community where the property is located. The hospitality sector will likely need to move away from the development of select-service properties and increase the number of full-service hotel properties if it plans to accommodate these demands. Full-service properties meet all of the integration, collaboration and lifestyle
– one that, through
subtle storytelling, pays homage to its

Gottlieb

needs of both business and leisure travelers in an enhanced capacity, providing everything all in one place.
)RU H[DPSOH, WKH 3DVpD +RWHO & 6SD, ZKLFK LV FXUUHQWO XQGHU FRQVWUXFWLRQ LQ +XQWLQJWRQ %HDFK, &DOLI., ZLOO RHU EXVLQHVV WUDYHOHUV WKH EHQHÀW DQG FRQYHQLHQFH RI KLJK-TXDOLW DPHQLWLHV, LQFOXGLQJ DPSOH PHHWLQJ VSDFH, XQLTXH RQ- site dining options and executive concierge services. As a result, these customers may never need to leave the prop- HUW RU WKH ORFDO FRPPXQLW, DQG WKH ZLOO VWLOO EH DEOH WR FRQGXFW WKHLU EXVLQHVV SURGXFWLYHO DQG HFLHQWO.
Leisure travelers are often looking for the same qualities as their business counterparts when choosing a property. This has led them to increasingly gravitate toward full-service options. Families and couples want to feel like part of WKH FRPPXQLW. 7KLV FDQ EH DFFRPSOLVKHG LQ D YDULHW RI ZDV, UDQJLQJ IURP LQFRUSRUDWLQJ ORFDO ÁDLU DQG FXOWXUH LQWR WKH GHVLJQ RI WKH SURSHUW WR KDYLQJ DPSOH DQG H[FLWLQJ DPHQLWLHV OLNH D KLJK-HQG SRRO, VSD RU ÀWQHVV FHQWHU ZKHUH guests can gather and experience the property together.
3URSHUWLHV WKDW SURYLGH H[SHULHQFHV DQG DPHQLWLHV WKDW FDQ EH VKDUHG E JXHVWV DQG QHDUE UHVLGHQWV DOVR RIWHQ ÀQG JUHDWHU VXFFHVV. )RU H[DPSOH, PDQ KRWHOV RHU KLJK-TXDOLW GLQLQJ RSWLRQV WKDW FUHDWH D FRPPXQLW H[SHULHQFH IRU their guests, nearby residents and visitors.
In addition to increased consumer expectations, geographic location plays a large role in the demand for full- service properties. Coastal areas like California and Florida, as well as major metropolitan areas such as Los Angeles and San Francisco, are primed for this type of growth due to their desirable locations and variety of attractions. On WKH RWKHU KDQG, PDQ VPDOOHU DQG VHFRQGDU PDUNHWV PD QRW KDYH WKH GHPDQG RU WUDF WR VXSSRUW WKH H[SHQVH RI a successful full-service venture.
,Q DUHDV ZKHUH LW FDQ EH HFRQRPLFDOO VXSSRUWHG, H[LVWLQJ IXOO-VHUYLFH KRWHOV ZLOO VHH DQ XSVZLQJ LQ WUDF, DQG QHZ full-service properties will likely compete well in the marketplace. For developers currently in the process of building D VHOHFW-VHUYLFH SURSHUW, LW ZLOO EH LPSRUWDQW WR FRQVLGHU ZKDW FDQ EH GRQH GLHUHQWO WR EULQJ KDQGSLFNHG, H[WHQGHG amenities to the property.
The key to creating a successful hospitality development over the next couple of years will involve understanding how to best incorporate full-service and lifestyle amenities into current and future projects. Successful ventures will truly understand customer desires and will build their properties to meet those demands.

— Bill Wilhelm, President, R.D. Olson Construction in Irvine, Calif.

host community. Think discrete ref-

erences to distinguished alumni as opposed to overt displays of school mascots and colors. Notice that we refer to these markets as ‘university- anchored’ instead of ‘college towns.’” In-house interior design teams VSHQG VLJQLÀFDQW WLPH LQ WKH FLWLHV where a new hotel will debut. They source vintage pieces, interview local

Above is an exterior rendering of the new Graduate Hotel in Berkeley, Calif. The rm purchased the 144-room Hotel Durant this past September.

24 • January 2016 • Western Real Estate Business www.REBusinessOnline.com


artists, and learn the history, culture and stories of the communi- ty. This allows them to capture the essence of the host campuses and cities through the design and amenities.
Gottlieb also believes in capitalizing on the already-established history of a well-known property when the opportunity arises.
“We’re certainly not opposed to new construction — having just completed a very successful ground-up development in Ox- ford, Miss. — but when presented with an existing structure that PHHWV RXU ORFDWLRQ, GHVLJQ DQG TXDOLW VSHFLÀFDWLRQV, ZH ORYH the challenge of a conversion,” he says. “The Hotel Durant was steeped in history and a venerable Berkeley institution. The ho-
7KH ÀUP UHFHLYHG
$31.5 million to ac- quire and reposition the Hotel Durant, which is the closest hotel to the Greek Theater and the
62,000-seat Califor- nia Memorial Stadi- um, where students and parents can

Ray

The entrance to the Hotel Durant in Berkeley, pre-conversion.

RECENT LEASING ACTIVITY

AIRPORT DISTRICT

tel has excellent bones, an irreplaceable location and history that couldn’t be replicated in a new build. In this case, we see more value in continuing the stewardship of a local landmark than in constructing new.”

experience UC Berkeley home foot- ball games. Financing was arranged by Jordan Ray, Ari Hirt, Steven Bu- chwald and David Behmoar of Mis- sion Capital’s Debt & Equity Finance Group. Ray, a managing director with the group, says education is, ironical- ly, key to getting unique projects like a FROOHJH-DQFKRUHG KRWHO FRQYHUVLRQ R the ground.
“These types of deals are not neces- sarily easy for lenders to understand,” he says. “For this particular deal, we educated the market and, in particu- lar, the lender who closed, about the business plan and the demand for this kind of hotel.”
Ray also says these types of deals have been made a bit easier by the fact that AJ Capital now has nine Gradu- ate Hotels under its belt.
“It’s never easy, but once we have educated the market about a product DQG FUHDWHG D ÀHOG RI LQWHUHVWHG FDSLWDO VRXUFHV, ZH FDQ UH-DSSURDFK WKDW ÀHOG
on the next relevant deal,” he notes.

World Famous West Coast Customs, Walmart Superstore

MEDIA DISTRICT

Olive & Thyme (expansion),

Whole Foods Market (opening 2018)

DOWNTOWN BURBANK

European Wax Center, Five Guys Burgers and Fries, Gyu-Kaku Japanese BBQ, Steak n Shake,

Wood Ranch BBQ & Grill, Yard House,

MAGNOLIA PARK

Morphe Brushes, Slone Vintage, Unique Vintage (remodel), The Hangar Grille

NEW DEVELOPMENTS

• Springhill Suites Los Angeles Burbank/Downtown, opened summer 2015

• Tesla Motors Burbank opened October 2015

• Hilton Garden Inn to open summer 2016

• IKEA set to expand to 456,000 sq. ft., its largest

US store in spring 2017

• Nickelodeon expansion scheduled to open 2017

• Talaria at Burbank mixed-use project to include

Whole Foods Market, opening spring 2018

• First Street Village mix-use project with 13,765 sq. ft. of new retail space

DYNAMIC

“You need to make sure your deal works, that you have realistic expecta- tions and that you are keeping the cap- ital stack as uncomplicated as possible. Construction lenders are getting more DQG PRUH ÀFNOH LQ WKLV HQYLURQPHQW. The less brain damage, the better.”
Gottlieb notes food and beverage outlets have also become very im- portant within the properties, as they must both complement the other of- ferings that are walking distance to FDPSXV, EXW VWLOO RHU JXHVWV VRPH- thing unique.
“Hotel restaurants traditionally car- ry stigmas that we strive to reverse,” he says. “Instead of the ubiquitous self-serve pantry and continental EUHDNIDVW EXHW, *UDGXDWH +RWHOV IHD- ture vibrant, yet approachable res- taurants, bars and lounges that gar- QHU D VLJQLÀFDQW ORFDO IROORZLQJ. :H GRQ·W GR VWX ÀQH GLQLQJ RU ZKLWH tablecloths but instead feature out- lets where guests, students and local residents can visit multiple times per week. This is becoming more com- mon, but we use local purveyors and products whenever possible.”
AJ Capital is currently sourcing fu-

BURBANK

For more information:

818-238-5180 | econdev@burbankca.gov | www.econdev.burbankca.gov
ture Graduate Hotel sites and is “ac-
tively looking at all of the obvious West Coast markets,” according to Gottlieb. Other Western-based prop- erties include the Graduate Tempe hotel, which was converted from the Twin Palms Hotel in September 2014. The hotel sits across from the Arizona State University campus in Tempe.

26 • January 2016 • Western Real Estate Business www.REBusinessOnline.com

Download icon PDF File 792.85 KB Download
Source: Westfair Communications

Mission Capital’s Debt & Equity Finance Group arranged a $24.5 million loan for 9 West Broad Street in Stamford, CT.

Stamford building secures $24.5M for remake

January 7, 2016 By Bill Fallon

Mission Capital Advisors, a national real estate capital markets firm, said recently its debt and equity finance group arranged a $24.5-million loan for 9 W. Broad

St., a 191,000-square-foot office property in Stamford.
The new financing will mean continued renovations, including a complete recladding of the building.
The Mission Capital team of Jordan Ray, Ari Hirt, Steven Buchwald, and
Lexington Henn represented the sponsor, a joint venture between funds
managed by Westport Capital Partners LLC and Forstone Capital, in securing the financing from a global real estate and investment management firm that was not named in the Mission Capital statement announcing the deal.
Westport Capital Partners has offices in Wilton, Los Angeles and London, England. Forstone Capital, which was recently honored for its work with the March of Dimes, is in Darien.
Mission Capital said, “After acquiring a nearly vacant building in 2013, Westport and Forstone have successfully leased a majority of the building and
repositioned the property by building a brand-new driveway and ramp, renovating the ground-floor cafeteria, creating a fitness center, and enhancing conference rooms, lobbies and common areas.”
“This transaction is another example of our ability to secure extremely favorable financing on behalf of clients that are looking to add value to office properties in downtown and suburban locations,” said Hirt. “The buyers acquired the property at an extremely low basis with essentially full vacancy and implemented capital improvements in short order. Ownership has already successfully leased up over half of the building, and with this bridge financing paving the way for the next series of building improvements, they are on their way to achieving full occupancy.”

The property has 540 on-site parking spaces and a shuttle service to the Stamford Transportation Center and, according to Mission Capital, “provides easy access to several retail hubs as well as dining and lodging locations.”
Mission Capital Advisors, which counts New York City among its national office sites, bills itself as “extremely active in securing debt and equity financing for office, retail, multifamily, industrial and hotel assets, and has been particularly active in closing transactions on suburban office properties across the country.”
Besides the Stamford deal, it cited recent refinances of $41 million for a 563,000- square-foot Pennsylvania property and sale-and-acquisition financing for a
191,000-square-foot property in California.

Download icon PDF File 64.52 KB Download

Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Debt & Equity Finance Group has arranged a $24.5-million loan for Nine West Broad Street, a 191,000-square-foot office property located in Stamford, Connecticut.

Media Contact: Shlomo Morgulis Beckerman

smorgulis@beckermanpr.com

201-465-8007

FOR IMMEDIATE RELEASE

Mission Capital Advisors Arranges $24.5 Million in Bridge Financing for

Office Building in Stamford

National Firm Demonstrates Continued Ability to Secure Capital for Value-Add Office Properties Across the Country

STAMFORD, Conn. (Jan. 6, 2016) — Mission Capital Advisors, a leading national real

estate capital markets solutions firm, today announced that its Debt & Equity Finance Group has
arranged a $24.5-million loan for Nine West Broad Street, a 191,000-square-foot office property located in Stamford, Connecticut.
The Mission Capital team of Jordan Ray, Ari Hirt, Steven Buchwald, and Lexington Henn represented the sponsor, a joint venture between certain funds managed by Westport Capital Partners LLC and
Forstone Capital, in securing the financing from a global real estate and investment management firm.
After acquiring a nearly vacant building in 2013, Westport and Forstone have successfully leased a majority of the building and repositioned the property by building a brand new driveway and ramp, renovating the ground-floor cafeteria, creating a fitness center, and enhancing conference rooms, lobbies, and common areas. With the financing in hand, ownership plans to complete its wide-scale renovations, including an entire recladding of the building exterior.
“This transaction is another example of our ability to secure extremely favorable financing on behalf of clients that are looking to add value to office properties in downtown and suburban locations,” said Hirt. “The buyers acquired the property at an extremely low basis with essentially full vacancy and implemented capital improvements in short order. Ownership has already successfully leased up over half of the building, and with this bridge financing paving the way for the next series of building improvements, they are on their way to achieving full occupancy.”
The property has 540 on-site parking spaces and a shuttle service to the Stamford Transportation Center, offering convenience to tenants commuting by car or mass transit. With its location in the heart of Stamford, the property provides easy access to several retail hubs as well as dining and lodging locations.
A leading real estate capital markets solutions firm, Mission Capital Advisors is extremely active in securing debt and equity financing for office, retail, multifamily, industrial, and hotel assets, and has been particularly active in closing transactions on suburban office properties across the country. Earlier this year, the firm arranged the sale and acquisition financing of Brittania Business Center, a 191,000- square-foot office and R&D portfolio in Pleasanton, California, which is receiving significant value-add enhancements, and secured $41 million in financing for 1110 American Parkway NE in Allentown,
Pennsylvania, enabling the acquisition of the the 563,000-square-foot office property as well as a comprehensive capital improvements program.

About Mission Capital Advisors

Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real
estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Al. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For
more information, visit www.www.missioncap.com.

About Westport Capital Partners LLC

Westport Capital Partners LLC is a real estate investment firm which provides domestic and international real estate related investment opportunities to institutional and private clients. Through its various
funds, the firm invests in a wide variety of distressed, opportunistic and core plus real estate assets. The firm has offices in Los Angeles, California, Wilton, Connecticut and London, England. For more information regarding Westport Capital Partners LLC, please visit www.westportcp.com.

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Source: Real Estate Finance & Investment

A joint venture between Westport Capital Partners and Forstone Capital has secured a $24.5 million loan of 9 West Broad Street. Mission Capital arranged the financing.

Westport JV secures Stamford office loan

January 6, 2016
A joint venture between Westport Capital Partners and ForstoneCapital has secured a $24.5m loan for the renovation of 9 West Broad Street, a 191,000- square-foot office property in Stamford, Conn. The financing will be used for finishing wide-scale renovations, including a complete re-cladding of the building exterior. Mission Capital Advisors arranged the financing.

Ari Hirt, a managing director in the equity and debt finance group at Mission Capital, declined to disclose the lender or pricing but noted that the floating-rate deal had a 70% LTV and a spread of less than 500 basis points. Borrowers have substantial room to secure what Hirt termed “extremely favorable financing” for value-added office properties in downtown and suburban locations.

The partners acquired the building in 2013, when it was nearly vacant. Since then, Westport and Forstone have successfully leased more than 50% of the building. Upgrades include building a brand new driveway/ramp, renovating the ground-floor cafeteria, creating a fitness center and enhancing conference rooms, lobbies and common areas. Additionally the property has 540 on-site parking spaces and a shuttle service to the Stamford Transportation Center.
Mission Capital specializes in security debt and equity financing for value-add acquisitions nationally and is particularly active in office and hotel. Recent transactions include securing a $27.4m acquisition financing of Britannia Business Center, a 191,000-square-foot office and R&D portfolio in Pleasanton, Calif., and a $41m acquisition financing for 1110 American Parkway NE, a
563,000-square-foot office property in Allentown, Pa.

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With Baltimore’s downtown population surging, a historic property that was recently converted to residential use has secured $34.3 million of financing.

Media Contact: Shlomo Morgulis Beckerman

smorgulis@beckermanpr.com

201-465-8007

FOR IMMEDIATE RELEASE

Baltimore’s Newly Revamped Equitable Building

Receives $34.3-Million Bridge Loan

Mission Capital Secures Favorable Terms for Luxury Rental Property During Lease-Up

BALTIMORE, Md. (Jan. 4, 2016) — With Baltimore’s downtown population surging, a historic property that was recently converted to residential use has secured $34.3 million of financing. The Equitable Building, a 223,877-square-foot, landmarked office building — recently redeveloped into a mixed-use facility with 189 luxury residential units and ground-floor retail — has received bridge financing from an overseas lender. The loan was arranged by Jonathan More, Ari Hirt, Steven Buchwald and Eugene Shevaldin of national real estate capital advisory firm, Mission Capital Advisors.

“We were able to secure very attractive financing and terms for this stunning property, allowing ownership to retire the existing capital structure while the property is still ramping up its occupancy,” said More. “We also structured the five-year, non-recourse deal to include an earnout that will provide the sponsor with additional capital upon the property’s stabilization.”
The 10-story property includes 24,800 square feet of retail space, 80 percent of which is leased to tenants including Au Bon Pain and 7-Eleven. Acclaimed as Baltimore’s first skyscraper, the building is superbly located in the heart of the city’s central business district, just steps from the Metro subway, and in proximity to the Baltimore Street Light Rail and major roadways.
The loan sponsor, a joint venture between JK Equities and SMB Bradley, purchased the Equitable Building in 2013, and began a major redevelopment campaign, upgrading many building features while maintaining the structure’s historic charm. The building now has a range of modern amenities including a fitness center with yoga studio and a 24-hour concierge that complement original building elements including arched windows and period mosaic tile.
“Ownership has done an excellent job of revitalizing the building, creating a premier multifamily asset that will meet the growing demand for quality residential product in the city’s
downtown,” said Hirt. “The area provides access to both the city’s business district as well as museum and other cultural landmarks. JK Equities and SMB Bradley have executed their business plan for the property seamlessly, already leasing up more than 40 percent of the residential units in a very short timeframe.”
Baltimore’s Central Business District has seen its residential population skyrocket in recent
years. The area’s residential demand is partially fueled by the presence of some of the country’s
leading medical schools, including John’s Hopkins Medical School, Mercy Medical School and
the University of Maryland Graduate School.
Mission Capital remains very active in arranging financing for hotel, office, retail, multifamily, industrial and self-storage properties across the country. The firm’s recent transactions include arranging $70 million in financing for an office building in Manhattan’s Greenwich Village; securing $13 million in financing for an industrial property in Sacramento; and procuring a $70- million take-out loan for a hotel property in Los Angeles’ Koreatown area.

About Mission Capital Advisors

Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, and California. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across debt, mezzanine and JV equity placement; commercial and residential loan sales; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of financing and loan sale transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business

objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.

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