10-Year, Interest-Only Financing Locks in Low Interest Rate for Hotel’s Owner, Golden Seahorse
NEW YORK (Sept. 20, 2018) — Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $137 million in senior, non-recourse, permanent financing for the Holiday Inn Manhattan-Financial District, a 50-story, 492-key hotel at 99 Washington Street in Lower Manhattan.
The Mission Capital team of Beau Williams, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny represented the owner, real estate development firm Golden Seahorse, in arranging the 10-year, fixed-rate loan from Ladder Capital. Proceeds from the loan were used to refinance an existing first mortgage and return capital to the borrower.
Built in 2014, the Holiday Inn Manhattan-Financial District is the tallest Holiday Inn in the world. Since opening, the property has successfully achieved significant market penetration, currently boasting 93-percent occupancy and climbing RevPAR. The property also includes the St. George Tavern, a full-service restaurant, bar and event space offering diners French and Asian cuisine.
“The borrower was looking to lock in a low-interest-rate loan without amortization, and we were able to create a very competitive market, with various banks, insurance companies and CMBS lenders vying to structure favorable deals,” said Beau Williams. “By identifying a network of lenders who recognized the strength of the sponsor and its management team, we were able to achieve our client’s goal of securing low-interest, non-recourse financing that is interest-only for the full 10-year term.”
The property is ideally located within a short walk from 12 subway lines and PATH trains, and is blocks from the 9/11 Memorial and Museum, One World Trade Center, Wall Street, and the New York Stock Exchange.
“Hotel properties continue to perform well across the country, and with New York City receiving a record number of tourists, hospitality properties in the New York are very attractive to capital providers,” said Ari Hirt. “Thus far in 2018, Mission has arranged financing for nearly 20 hotel properties, with 20 percent of the financings exceeding $100 million in loan proceeds. This Holiday Inn financing is one of the largest permanent loans on a NYC hotel this year, and it is indicative of the appetite lenders continue to have for well-located hotel properties.”
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, Florida, Texas, California and Alabama. 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.missioncap.com.