Tag: Closed Deal

Why Mission Capital? Featuring David Tobin (Principal)

New York (12/18/2018)

Principal, David Tobin, discusses why customers choose Mission Capital when evaluating service and solutions providers to execute capital raising or asset sale transactions.

OVERVIEW

Customers often ask us why Mission when evaluating service and solutions providers to execute on capital raising or asset sale transactions. The answer to that is threefold. Mission is a diverse platform which focuses on capital raising and on asset sales. So, we have a multi-pronged relationship with the counter-parties that we work with when representing a customer. Number two, we’ve kept the band together for sixteen years. So, Mission’s been growing since it started in 2002. We now have six offices around the country and all of the key managers that started or came to the firm since the beginning of the firm are still with the firm. And number three is that we will out-hustle, out-work and out-think our competition. We’re nimble, we’re intelligent, e have a great team and we are constantly trying to outdo our competitive set.

DAVID TOBIN’S MISSION CAPITAL MILESTONES

William David Tobin is one of two founders of Mission Capital and a founder of EquityMultiple, an on-line loan and real estate equity syndication platform seed funded by Mission Capital. He has extensive transactional experience in loan sale advisory, real estate investment sales and commercial real estate debt and equity raising. In addition, Mr. Tobin is Chief Compliance Officer for Mission Capital.
Under Mr. Tobin’s guidance and supervision, Mission has been awarded and continues to execute prime contractor FDIC contracts for Whole Loan Internet Marketing & Support (loan sales), Structured Sales (loan sales) and Financial Advisory Valuation Services (failing bank and loss share loan portfolio valuation), Federal Reserve Bank of New York (loan sales), Freddie Mac (programmatic bulk loan sales for FHFA mandated deleveraging), multiple ongoing Federal Home Loan Bank valuation contracts and advisory assignments with the National Credit Union Administration.

BACKGROUND

From 1992 to 1994, Mr. Tobin worked as an asset manager in the Asset Resolution Department of Dime Bancorp (under OTS supervision) where he played an integral role in the liquidation of the $1.2 billion non-performing single-family loan and REO portfolio. The Dime disposition program included a multi-year asset-by-asset sellout culminating in a $300 million bulk offering to many of the major portfolio investors in the whole loan investment arena. From 1994 to 2002, Mr. Tobin was associated with a national brokerage firm, where he started and ran a loan sale advisory business, heading all business execution and development.

Mr. Tobin has a B.A. in English Literature from Syracuse University and attended the MBA program, concentrating in banking and finance, at NYU’s Stern School of Business. He has lectured on the topics of whole loan valuation and mortgage trading at New York University’s Real Estate School. Mr. Tobin is a member of the board of directors of H Bancorp (h-bancorp.com), a $1.5 billion multi-bank holding company that acquires and operates community banks throughout the United States. Mr. Tobin is a member of the Real Estate Advisory Board of the Whitman School of Management at Syracuse University and a board member of A&M Sports / Clean Hands for Haiti.

MORE ABOUT DAVID TOBIN

www.missioncap.com/team/?member=dtobin

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Thorofare Capital provides non-recourse, floating-rate financing
for leading Chicago developer

CHICAGO (Nov. 13, 2018) — Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $13 million of non-recourse, floating-rate financing on behalf of an affiliate of the Sterling Organization to recapitalize 110 East Pearson Street, a 9,000-square-foot vacant retail property in the heart of the Magnificent Mile section of Chicago.

Jonathan More, Alex Draganiuk, Lexington Henn, and Justin Hunt of the Mission Capital team secured the loan from Thorofare Capital, a Los Angeles-based national commercial real estate loan origination and servicing company. The loan features a competitive leverage level with flexibility for future capital expense funding and leasing terms and will be used to capitalize the property, lease up the available space and implement significant capital improvements.

Currently vacant, the property consists of 7,303 square feet of ground-floor retail space and 1,789 square feet of retail space on the mezzanine level. For Mission Capital Advisors, the transaction reflects the firm’s ability to find appropriate capital providers for innovative developers across the country.

Thorofare’s willingness to provide financing stemmed from the firm’s recognition of the sponsor’s strong track record in value-add retail, as well the property’s desirable location, according to Felix Gutnikov, Thorofare’s Head of Origination.

“As a trusted lender, Thorofare has enjoyed a very positive relationship with Mission Capital Advisors and has completed several transactions with the firm and its clients,” Gutnikov said. “We were able to offer Sterling Organization a structured financing solution for a well-located retail asset within one of the most recognized shopping districts in the country.”

The property is ideally situated in the heart of Chicago’s Magnificent Mile, the city’s largest and most vibrant shopping district, which has approximately $1.9 billion of annual retail sales.  Over the past year, the district has seen retail vacancies decline, while rents have grown by nearly seven percent, further underscoring the property’s latent potential.

 

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.www.missioncap.com.

 

About Thorofare Capital

Thorofare Capital, Inc. is a national commercial real estate loan origination and servicing company. The firm focuses on $5 million to $100 million financing transactions, targeting value-add and opportunistic acquisitions, recapitalizations, and distressed debt secured by transitional properties. Its affiliate, Thorofare LLC, is an SEC Registered Investment Adviser specializing in alternative fixed-income opportunities through US commercial real estate debt investments. With a national presence, Thorofare has invested more than $1.6 billion structured as senior secured short and intermediate-term loans, across 10+ property types throughout 28 states. For more information, visit www.thorofarecapital.com.

Sterling lands $13M refi for retail space at Near North Side tower

The Thorofare Capital loan will help Sterling renovate and lease the former Bar Toma space


November 9, 2018

The Sterling Organization landed a $13 million refinancing on the retail space in a tower just off Michigan Avenue on the Near North Side.

The Palm Beach-based equity fund earlier this year bought the 9,000-square-foot retail portion at the base of the 57-story tower at 110 East Pearson Street for $15.2 million. The space is best known as the former home of Bar Toma, a restaurant that opened in 2011 and shuttered in January 2017.

Thorofare Capital supplied the non-recourse, floating-rate loan, which was arranged by Mission Capital Advisors’ Jonathan More, Alex Draganiuk, Lexington Henn, and Justin Hunt. Part of the proceeds will be used to find tenants and make “significant” capital improvements.

Now vacant, the property consists of 7,300 square feet on the ground floor and 1,800 square feet on the mezzanine level.

Sterling paid $1,616 per square foot for the space at the base of the tower, which was built in the 1970s.

It was the company’s second Downtown retail deal in a few months, following April’s $8.1 million purchase of the 87,100-square-foot office building at 219 South State Street, which also includes street retail currently occupied by three Foot Locker-brand shoe stores. It took out an $18.3 million loan from Los Angeles-based Karlin Real Estate to finance that purchase and planned renovations of the building.

In September, Sterling paid $20 million to acquire Hillside Town Center, a nearly 165,000-square-foot retail park in west suburban Hillside. It also bought the 101,000-square-foot Prairie Market shopping center in far west suburban Oswego, but would not disclose the purchase price.

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Capital advisor secures non-recourse loan for local developer’s residential, commercial and parking project

AUSTIN, Texas – Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $29.4 million in non-recourse financing for the construction of 1600 S 1st Street, an 86,700-square-foot, mixed-use condo and commercial development in the Bouldin neighborhood of Austin, Texas. The Mission Capital team of Jason Parker, Steven Buchwald and Jamie Matheny represented developer PSW Real Estate, LLC in arranging the senior loan from a local debt fund.

Situated in the heart of South Austin, the four-story property will feature 59 innovative residential condominiums, approximately 22,800 square feet of ground-floor commercial space and a 321-space underground parking garage. The 59 residences include six studio units, 26 one-bedroom units, 24 two-bedroom units and three three-bedroom units. The property will also feature a wide range of amenities, including a private resident roof deck and a second-floor resident courtyard.

“Austin’s recent growth has been well-documented, and the area around this property has seen its population increase by a staggering 27 percent since 2010,” said Parker. “While It is somewhat challenging to get construction financing for ground-up condos at this stage of the cycle, we were able to achieve our client’s goals by stressing the unmatched demand in this location and the strength of the sponsor’s business plan. We ultimately closed favorable financing with a local debt fund, which provided a non-recourse loan.”

The property’s location in the heart of South Austin positions it just one mile south of the Austin central business district, providing easy access to a myriad of restaurants, retail, and entertainment options. With the neighborhood’s recent population and job growth, this section of Austin suffers from a scarcity of residential, commercial and parking space, and this new development should help meet the local community’s demand for space.

“PSW is known in this region as a savvy developer that is plugged into the market dynamics in every submarket, and they realized they could capitalize on the area’s growth and provide much-needed product to local residents and businesses,” said Buchwald. “With their track record of success and knowledge of the local market, we were able to generate numerous bids, ultimately closing this strong deal with a local debt fund.”

Austin-based PSW is a nationally acclaimed real estate developer and homebuilder that designs and builds urban living environments for people who care about quality and their impact on the world around them. PSW is active in Austin, San Antonio, Dallas, Seattle, and Denver. Utilizing a discerning eye for creating value, PSW thoughtfully produces homes and communities that naturally integrate into their surrounding neighborhoods. With a vision for how the world will be living and working in the future, PSW creates homes that offer proximity to work, school and other important resources while implementing energy efficient construction methods and materials. These key elements promote urban density and conservation, reduce waste, and engender social connectivity.

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.www.missioncap.com.

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Cross Collateralization of Two Properties Situated Across the Street from Each Other Exemplifies Firm’s Ability to Complete Unique Deals

WINSTON-SALEM, N.C. — Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $19.25 in non-recourse, floating-rate financing for the acquisition of a portfolio of extended-stay hotels in Winston-Salem, North Carolina.

The Mission Capital team of Beau Williams, Steven Buchwald, and Lexington Henn represented the sponsor, a partnership of Milestone Companies and Woodmont Lodging, in arranging acquisition financing for the two properties that comprise the portfolio – a 91-key Home2 Suites by Hilton and a 95-key SpringHill Suites by Marriott. The properties are located at 1010 Marriott Crossing Way and 1015 Marriott Crossing Way, respectively.

“Despite the fact that the Home2 Suites just recently opened and had limited operating history, we were able to create significant competition among our network of lenders, who were attracted to the strength of the sponsor and the projected debt yield,” said Williams. “The hotels’ close proximity to one another will enable the sponsor to limit operating expenses, while the two properties will benefit from being part of the Marriott and Hilton reservations systems. With these factors at play, we received strong interest from capital providers and closed a very strong deal for the borrower.”

The hotels are situated just off of I-40, seven miles from downtown Winston-Salem and Wake Forest University, and under 30 miles from the Piedmont Triad International Airport. The SpringHill Suites Winston-Salem, which opened in 2009, underwent substantial property improvements in 2017, including a full renovation of its guestrooms, lobby, furniture and fixtures, and a build-out of its ground-floor breakfast area.

Completed in February 2018, the Home2 Suites Winston-Salem is among the newest hotels from Hilton Worldwide, the second-largest hospitality company in the world. As a result, it will require few capital expenditures, while providing significant upside during its ramp up. The financing is the second loan that Mission Capital has secured on a Home2 Suites branded property this year. In August, the firm arranged a $19 million CMBS loan for the refinance of the Home2 Suites by Hilton in downtown Greenville, South Carolina.

“If the performance of the Home2 Suites in Greeneville and other locales is any indication of the success that the brand will experience in Winston-Salem, we anticipate a quick stabilization and high NOI margin. The resultant additional cash flow will be added to the already-robust net operating income that’s currently being generated by SpringHill Suites,” Williams said.

The portfolio will be managed by Milestone Hospitality Management, LLC, which is controlled by the principals of Milestone, a fully integrated hospitality investment and development firm headquartered in Baltimore, Maryland. Milestone’s executive leadership team has invested in, managed, and developed over 90 hotels across 25 states over the course of their respective careers. Asset management services will be provided by Woodmont Lodging, which has vast experience across the lodging industry.

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.www.missioncap.com.

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Developer retires construction loan, inks creative interim financing at attractive rate

TAMPA, Fla. – Mission Capital Advisors announced that its Debt and Equity Finance team has structured a creative $53-million non-recourse ramp loan for The Godfrey Hotel and Cabanas Tampa, a newly renovated, 276-key, waterfront hotel located at 7700 West Courtney Campbell Causeway in Tampa, Florida.

The Mission Capital team of Jordan Ray, Ari Hirt, Alex Draganiuk and Justin Hunt represented an affiliate of Oxford Capital Group in securing the loan from Marathon Asset Management. The financing will be used to repay the property’s construction loan and return additional capital to the sponsor.

The waterfront property is a Tampa icon that was once owned by the New York Yankees, and served as the club’s Spring Training home for several decades. In 2015, Oxford acquired the hotel with plans for a comprehensive redevelopment that would include creating Tampa’s premier lifestyle hospitality property, replete with top-of-the-line amenities and the recently opened WTR Pool & Grill. An upscale pool, cabana club, bar and corporate event space, WTR provides guests with an unmatched experience of luxury in a modern tropical setting, featuring handcrafted cocktails, exquisite dining and entertainment in a poolside area overlooking Tampa Bay.

“Oxford bought this property with the vision to create a unique hotel that has the best poolside venue in the Tampa market,” said Ray. “Just a month after the WTR Pool & Grill opened, there is a lot of action at the hotel and the pool, and we were able to repay the construction financing and replace it with a ramp loan with earn-outs at very attractive terms.”

In addition to the pool and cabanas, Oxford’s comprehensive repositioning campaign included the addition of 15 guest rooms; complete renovations of existing guestrooms, with hardwood flooring, marble countertops and other top-of-the-line amenities; and a complete renovation of the lobby, including the addition of a café and wine bar.

“Ramp loans are based in large part on projecting the property’s path to stability, and that adds a wrinkle of complexity that not all lenders can underwrite,” said Hirt. “However, Oxford’s long standing track record, as well as the incredible product they’ve created at the property, gave capital providers extreme confidence in the sponsor’s business plan. We produced a healthy market with several lenders vying for the deal, and we ultimately closed this floating-rate loan with very strong proceeds.”

Added Hirt: “The loan we ultimately closed is structured with an immediate return on equity as well as an additional earn-out once certain benchmarks are reached, which will bring the total proceeds to the full $53 million.”

Oxford Capital Group, LLC is a national hospitality focused real estate investment, development and management firm. Oxford Hotels and Resorts, LLC is its wholly owned hotel operating and branding affiliate. Oxford, its affiliates, and principals have been involved in approximately $3 billion of real estate and private equity investments, including approximately 13,000 hotel rooms and over 2,000 senior housing units. Among the firm’s most impressive recent developments is Essex on the Park in Chicago, which includes the expansion and comprehensive redevelopment of the historic Essex Inn on Michigan Avenue in Chicago and the ground-up construction of an adjacent 479-unit luxury apartment building. The property, whose $170-million construction loan was also arranged by Mission Capital, is slated to open in spring of 2019. For information, visit www.oxford-capital.com or www.ohrllc.com.

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.www.missioncap.com.

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September 27,2018

Endeavor Real Estate Group has provided PSW Real Estate with a $29.4 million construction loan to erect a mixed-use condominium project in Austin, Texas, Commercial Observer has learned.

Endeavor’s senior loan is non-recourse, sources told CO, although additional details on the terms of the financing were not disclosed. A Mission Capital Advisors trio of Jason Parker, Steven Buchwald and Jamie Matheny arranged the senior debt for PSW.

“Austin’s recent growth has been well-documented, and the area around this property has seen its population increase by a staggering 27 percent since 2010,” Parker said in a statement. He stressed the challenges of securing construction financing at this stage in the cycle, adding that the area’s insatiable demand as well as the strong sponsorship in PSW ultimately closed the construction debt.

The planned four-story, 86,700-square-foot development—located at 1600 South 1st Street —will include 59 condominiums and 22,800 square feet of ground-floor commercial space as well as a 321-space subterranean parking garage.

Of the 59 units, there will be six studios, 26 one-bedroom and 24 two-bedroom condos and three three-bedroom units. The property will also feature a private roof deck and a courtyard on the second floor.

While apartment yield spreads in the Austin market have been compressing slowly over the last few years, investment activity has remained robust, buoyed by strong fundamentals. Vacancies in the southern portion of Austin fell 70 basis points on the year to 5.7 percent in the second quarter while roughly 1,900 units came online, adding to the highest level of annual completions in the market in more than five years, as per data from Marcus & Millichap.

An official at Endeavor declined to comment on the transaction. An official at PSW did not immediately respond to an inquiry.

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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.www.missioncap.com.

Financial Findings: Three Deals to Know

September 26, 2018

NATIONAL REPORT — Hotel Business has been tracking deals in the industry. Sonnenblick-Eichner Company, Mission Capital Advisors, and Berkadia have recently secured financing for hotels around the country:


Provenance Hotels’ Old No. 77 Hotel & Chandlery Receives $29.2M Loan

Sonnenblick-Eichner Company has arranged $29.2 million of interim first mortgage financing to refinance the Old No. 77 Hotel & Chandlery, a historic 167-room, full-service boutique hotel located in New Orleans’ Warehouse Arts District, just a few blocks from the French Quarter.

The five-year floating rate loan was priced over LIBOR at a spread in the mid-300s. Loan proceeds are being used to refinance the existing acquisition loan, as well as provide a return of equity to the borrower.

In June of 2015, the hotel completed a $14-million ($94,000 per room) renovation that included renovating the guestrooms, bathrooms, public spaces and a build-out of the ground-floor restaurant space. Amenities include Compère Lapin, an upscale restaurant and bar helmed by Nina Compton, an acclaimed chef who has won several awards, including the James Beard Award for Best Chef: South in 2018.

“The interim floating rate loan will allow the property to continue to ramp up post-renovation while providing a lower cost of capital than the original acquisition loan,” said Sonnenblick-Eichner’s Principal Elliot Eichner.


Mission Capital Arranges $137M Loan for Holiday Inn Manhattan-Financial District

Mission Capital Advisors’ 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 St. 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 touting 93% occupancy and climbing RevPAR, according to the company. 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.”


Berkadia Phoenix Team Secures $78M in Financing for Six Hotels

Berkadia secured $78 million in financing for six hotel properties in a portfolio of eight total hotel properties. Director Adrienne Kautzman of the Phoenix office secured the acquisition bridge loan through Ares Commercial Real Estate Corporation. The borrower was a partnership led by PEG Companies, and the deal closed on September 7.

“PEG’s investment thesis coupled with our deep lending relationships and knowledge of the hospitality space allowed us to facilitate flexible and competitive financing on these six hotels to provide various exit strategies for the PEG team,” said Kautzman.

The properties include Residence Inn by Marriott and Courtyard by Marriott hotels located in St. Petersburg, FL; Sacramento, CA; Santa Fe, NM; Charlotte, NC; Phoenix; and St. Louis, for a total of 828 hotel rooms.

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Jubao Xie’s FiDi Holiday Inn Receives $137M in Refinancing


September 21, 2018

NEW YORK CITY — Under the limited liability corporation, Golden Seahorse, Jubao Xie received $137 million in senior, non-recourse, permanent financing for the Holiday Inn, Manhattan – Financial District. Built in 2014, the 50-story, 492-key hotel is the largest Holiday Inn in the world. Located at 99 Washington St. between Rector and Carlisle streets, the hotel is near the World Trade Center.

Ladder Capital provided a fixed-rate loan, which will be used to refinance an existing first mortgage and return capital to the borrower, according to Mission Capital who negotiated the loan.

Xie developed the property with Sam Chang, the chairman of McSam Hotel Group, a major New York City hotel developer. In November 2014, Chang and Xie received $135 million in refinancing from UBS. The loan replaced the existing construction debt of $45 million from Cathay Bank, according to Commercial Observer. In December 2014, Xie bought out Chang’s interest, according to Real Capital Analytics.

The Real Deal reported that in December 2017, Xie had placed the hotel on the market with Marcus and Millichap seeking an asking price north of $300 million. With the mortgage loan maturing, Xie considered selling but evaluating local dynamics and capital markets decided to refinance, according to the publication.
A Mission Capital Advisors debt and equity finance team with Beau Williams, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny represented the owner in this most recent loan.

The brokers note that the hotel has achieved significant market penetration and currently has a 93% occupancy rate. The property also includes the restaurant and bar, St. George Tavern. “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,” says 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.”

“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,” says Hirt. “Thus far in 2018, Mission has arranged financing for nearly 20 hotel properties, with 20% of the financings exceeding $100 million in loan proceeds.” The Holiday Inn financing is one of the largest permanent loans this year on a New York City hotel, and it indicates the appetite lenders have for well-located hotel properties, Hirt adds.

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FiDi Holiday Inn Secures $137M Permanent Loan


September 24, 2018

Mission Capital Advisors has arranged $137 million in senior, non-recourse, permanent financing for the Holiday Inn Manhattan-Financial District. The 50-story, 492-key hotel at 99 Washington St. is the world’s tallest Holiday Inn.

A Mission Capital team of Beau Williams, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny represented developer Golden Seahorse LLC in arranging the 10-year, fixed-rate, non-recourse loan from Ladder Capital. Loan proceeds were used to refinance an existing first mortgage and return capital to the borrower.

“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 Williams.

Hirt said the Holiday Inn financing was “one of the largest permanent loans on an NYC hotel this year, and it is indicative of the appetite lenders continue to have for well-located hotel properties.”

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Manhattan Holiday Inn Lands $137M Loan

Mission Capital Advisors worked on behalf of Golden Seahorse to arrange the refinancing of the 492-key property, which also marks the brand’s tallest hotel in the world.


September 24, 2018

Golden Seahorse has landed a $137 million refinancing loan for the Holiday Inn Manhattan-Financial District. Mission Capital Advisors’ Debt and Equity Finance Group arranged the 10-year senior, non-recourse permanent loan from Ladder Capital.

Located at 99 Washington St., the 50-story hotel is the tallest Holiday Inn in the world. The property was constructed in 2014 and comprises 492 keys. Amenities include a fitness center, a business center, a laundry facility, free Wi-Fi, concierge services and the St. George Tavern, a full-service restaurant, bar and event space.


FINANCING DETAILS

Proceeds from the financing were used to refinance an existing first mortgage and return capital to the borrower.

Mission Capital’s Directors Beau Williams and Jamie Matheny, as well as Managing Directors Ari Hirt, Steven Buchwald and Alex Draganiuk, represented the owner. Last month, Hirt and Matheny were part of the team that arranged $28.5 million for the construction of a new Hilton-franchised hotel in Fort Lauderdale, Fla.

“This is one of the largest permanent loans on a New York City hotel this year, and our ability to arrive at the structure and pricing we were able to achieve on behalf of our client is a testament to the strength of our client, the property and our execution team,” Williams told Commercial Property Executive. “The borrower had several complex requirements that we were looking to satisfy, and while we were in talks with a wide range of lenders—including conduits, insurance companies and banks—there were only a few willing to work through all the complexities required to close the deal. Ladder understood the various moving parts, and we were able to financially engineer a solution that was compatible for Ladder to execute, resulting in a very favorable structure for the client, with 10-year, interest-only financing at a very attractive rate.”

The hotel is within close proximity to 12 subway lines and PATH trains. Nearby attractions include the 9/11 Memorial and Museum, the Statue of Liberty, Wall Street, One World Trade Center and the New York Stock Exchange.

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Mission Capital Arranges $137M Refinancing for Holiday Inn Manhattan-Financial District


September 25, 2018

NEW YORK CITY — Mission Capital Advisors has arranged a $137 million refinancing for the Holiday Inn Manhattan-Financial District, a 50-story, 492-room hotel in Manhattan. Located at 99 Washington St., the property was built in 2014 and is the tallest Holiday Inn in the world. Beau Williams, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny of Mission Capital represented the borrower, real estate development firm Golden Seahorse, in securing the 10-year, interest-only loan at a fixed rate through lender Ladder Capital. The property also includes the St. George Tavern, a full-service restaurant and event space. Proceeds from the loan were used to refinance an existing first mortgage and return capital to the borrower.

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Ladder Capital is the lender at 99 Washington Street


September 20, 2018

Almost a year after Jubao Xie put the world’s tallest Holiday Inn up for sale, the Chinese developer refinanced the property at 99 Washington Street with a $137 million mortgage.

Ladder Capital issued the 10-year, non-recourse, interest-only, fixed-rate loan, which replaces a $135 million mortgage from Bank of China. Mission Capital Advisors’ Beau Williams, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny brokered the deal.

Xie developed the 50-story, 492-room hotel in Manhattan’s Financial District with Sam Chang and took control of the property in 2014. The hotel has an occupancy rate of 93 percent. The building is also home to restaurant St. George’s Tavern.

Xie hired Marcus & Millichap in late 2017 to shop the hotel with an asking price of more than $300 million.

“With a loan maturing, the borrower was considering selling the property or refinancing, and the local dynamics and capital markets made them ultimately decide to refi,” said Mission’s Williams. “They’re very bullish on New York’s hotel market, and with cheap financing available, they determined that the best strategy was to make this asset a long-term hold.”

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Non-recourse financing allows DMCC Holdings to retire 10 individual mortgages

NEW YORK (Sept. 5, 2018) – Mission Capital Advisors announced that its Debt and Equity Finance team has arranged $16.75 million of permanent financing to refinance a portfolio of 10 office, medical, and retail properties located across northern Florida. The Mission Capital team of Matt Polci, Ari Hirt, Alex Draganiuk and Justin Hunt represented DMCC Holdings in securing the non-recourse loan from Deutsche Bank.

The 10 assets include retail, office, medical and office/medical properties, all of which are located in Greater Orlando, Greater Tampa and Greater Altamonte Springs. In aggregate, the portfolio is currently 97.7-percent leased. Each property has a strong location within its submarket, and benefits from convenient access to major roadways.

“After acquiring these assets over the past four years, DMCC has made significant property improvements, thereby generating strong leasing and renewal activity across the portfolio,” said Polci. “This non-recourse CMBS loan will replace ten individual mortgages, each of which was structured with recourse, while returning additional capital to the sponsor. With DMCC in the midst of a corporate expansion, the strong proceeds will enable them to continue adding to their portfolio of well-positioned commercial properties.”

Founded in 2005 by Narinder Seehra and Sunny Matharoo, DMCC Holdings is a privately held commercial real estate investment firm that focuses on investments that provide immediate in-place cash flow and significant capital appreciation.

“With DMCC entering its second decade of business, the refinance and restructuring through Mission Capital was the first part of our strategic growth plan,” said DMCC CEO Narinder Seehra. “This second phase, which will be completed in the 3rd quarter of 2018, will allow the company to become a Registered Managed Fund through its Offering Memorandum allowing it to attract investors from varying demographics and across multiple geographies. The Fund will allow investors to use registered vehicles such as 401K, DROP, RRSP, RESP and TFSA funds to invest whilst ensuring increased security through asset class diversification and reduced risk exposure.”

“Because there were 10 pieces of collateral involved in this portfolio, many capital providers were challenged with the necessary and complex legwork to underwrite the deal,” said Hirt. “After approaching a wide range of local and national lenders, we were able to structure very favorable terms with a lender who recognized the success of DMCC’s compelling business plan and ultimately provided more proceeds than the sponsor was anticipating.”

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.www.missioncap.com.

Mission Capital Arranges $16.8M Refinancing of Mixed-Property Portfolio in Central Florida

September 28, 2017

NEW YORK — New York-based Mission Capital Advisors has arranged a $16.8 million loan for the refinancing of 10 office, medical and retail properties located across Central Florida. Matt Polci, Ari Hirt, Alex Draganiuk and Justin Hunt of Mission Capital arranged the non-recourse loan through Deutsche Bank on behalf of the borrower, DMCC Holdings. The assets are located in the greater Orlando, Tampa and Altamonte Springs markets. The portfolio was 97.7 percent leased at the time of sale. DMCC acquired the properties over the past four years, and has made significant property improvements.

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Sycamore Investment Group capitalizes on hotel’s success, inks refinancing at favorable terms

GREENVILLE, S.C. (Aug. 21, 2018) — Mission Capital Advisors announced that its Debt and Equity Finance Team has arranged $19 million of permanent, non-recourse financing for the Home2 Suites by Hilton Greenville Downtown, a 117-key, extended-stay hotel located at 350 North Main Street in downtown Greenville, South Carolina. The Mission Capital team of Beau Williams, Steven Buchwald, and Justin Hunt represented Sycamore Investment Group in arranging the non-recourse loan.

The 110,491-square-foot property is a premier, extended-stay hotel, with well-appointed studio and one-bedroom suites that include full kitchens and in-suite work stations. The property offers guests a wide range of amenities, including the Spin2Cycle fitness center; an outdoor pool; outdoor patios with grills and fire pits; and valet parking. Since opening in September 2016, the hotel has been one of the top-performing extended-stay/limited-service hotels in Greenville. Building on the hotel’s immediate success, ownership sought to retire the property’s construction loan and procure permanent financing.

“Although Home2Suites has ramped up its operations quickly, a lot of supply has come to the local market, so we had to demonstrate to lenders that the hotel would maintain its strong performance,” said Williams. “As an extended-stay hotel, the property differentiates itself from much of the competition, and the diversified clientele it attracts points to its continued success. We were able to leverage our lender relationships to create a competitive market for this deal resulting in very favorable terms to our client.”

The hotel is situated in a prime location in downtown Greenville near countless restaurants and retail options. It is also within five minutes of the Bon Secours Wellness Arena — which hosts hockey games and performing artists — and the TD Convention Center, one of the largest exhibit halls in the country.

“After creating one of the Greenville market’s most inviting and successful hospitality properties, Sycamore was able to capitalize on its success,” said Buchwald. “This non-recourse CMBS loan retires the construction financing, which was structured with recourse, and returns capital to the sponsor. This allows them to continue executing their business strategy and pursue other development opportunities.”

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.www.missioncap.com.

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August 17, 2018

Oxford Capital Group has scored a $53 million loan from Marathon Asset Management to refinance construction debt on The Godfrey Hotel and Cabanas in Tampa, Fla., Commercial Observer can exclusively report.

The non-recourse, floating-rate loan carries a spread in the low 400s over LIBOR, sources said, and retires roughly $30 million in previous construction financing from CapitalSource. Additional capital will be provided to the sponsor upon meeting certain performance measures.

Mission Capital Advisors’ Jordan Ray, Ari Hirt, Alex Draganiuk and Justin Hunt secured the debt.

Mission Capital Arranges $53M Refinancing of Waterfront Hotel in Tampa

August 21,2018

TAMPA, FLA. — Mission Capital Advisors has arranged a $53 million loan for the refinancing of The Godfrey Hotel and Cabanas Tampa, a 276-room hotel located at 7700 W. Courtney Campbell Causeway in Tampa. The waterfront property was once owned by the New York Yankees and served as the team’s spring training home for several decades. Jordan Ray, Ari Hirt, Alex Draganiuk and Justin Hunt of Mission Capital arranged the non-recourse loan through Marathon Asset Management on behalf of the borrower, an affiliate of Oxford Capital Group. Oxford acquired the hotel in 2015 and transformed the property with the addition of 15 guestrooms, complete renovations of guestrooms and the lobby and the addition of the WTR Pool & Grill. WTR includes a pool, cabana club, bar and corporate event space overlooking Tampa Bay.

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Tampa Waterfront Hotel Secures $53M Floating-Rate Loan

August 24, 2018

TAMPA, FL–An iconic Tampa waterfront hotel that was once the spring training camp for Major League Baseball’s New York Yankees landed a $53-million non-recourse ramp loan that was structured by Mission Capital Advisors. It was secured by the Godfrey Hotel and Cabanas Tampa, a newly renovated, 276-key, waterfront hotel located at 7700 West Courtney Campbell Causeway.

The Mission Capital team of Jordan Ray, Ari Hirt, Alex Draganiuk and Justin Hunt represented an affiliate of Oxford Capital Group in securing the loan from Marathon Asset Management. The financing will be used to repay the property’s construction loan and return additional capital to the sponsor.

In 2015, Oxford acquired the hotel with plans for a comprehensive redevelopment that would include top-of-the-line amenities and the recently opened WTR Pool & Grill. The result was an upscale pool, cabana club, bar and corporate event space in a poolside area overlooking Tampa Bay.

“Oxford bought this property with the vision to create a unique hotel that has the best poolside venue in the Tampa market,” said Ray. “Just a month after the WTR Pool & Grill opened, there is a lot of action at the hotel and the pool, and we were able to repay the construction financing and replace it with a ramp loan with earn-outs at very attractive terms.”

Repositioning Program Created Added Value

In addition to the pool and cabanas, Oxford’s comprehensive repositioning campaign included the addition of 15 guest rooms; complete renovations of existing guestrooms, with hardwood flooring and other top-of-the-line amenities.

“Ramp loans are based in large part on projecting the property’s path to stability, and that adds a wrinkle of complexity that not all lenders can underwrite,” said Hirt. “However, Oxford’s long standing track record, as well as the incredible product they’ve created at the property, gave capital providers extreme confidence in the sponsor’s business plan.”

Added Hirt: “The loan we ultimately closed is structured with an immediate return on equity as well as an additional earn-out once certain benchmarks are reached, which will bring the total proceeds to the full $53 million.”

Oxford Capital Group, LLC is a national hospitality focused real estate investment, development and management firm. Oxford Hotels and Resorts, LLC is its wholly owned hotel operating and branding affiliate. Oxford, its affiliates, and principals have been involved in approximately $3 billion of real estate and private equity investments, including approximately 13,000 hotel rooms and over 2,000 senior housing units.

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Owner of renovated waterfront hotel in Tampa borrows to repay construction loan

Oxford Capital Group the Godfrey Hotel & Cabanas Tampa also borrowed $53M to “return additional capital to the sponsor”

August 26, 2018

The owner of a renovated bayfront hotel in Tampa, the Godfrey Hotel & Cabanas Tampa, repaid a construction loan with a $53 million “ramp” loan.

Besides paying off the construction loan, proceeds of the ramp loan from also will be used “return additional capital to the sponsor,” Mission Capital Advisors said in a press release.

“Ramp loans are based in large part on projecting the property’s path to stability … a wrinkle of complexity that not all lenders can underwrite,” Ari Hirt of Mission Capital said in a prepared statement.

Hirt arranged the loan from Marathon together with Mission Capital’s Jordan Ray, Alex Draganiuk and Justin Hunt.

Several lenders competed for the deal, according to Hirt, before the property owner, Oxford Capital Group, LLC, closed the adjustable-rate $53 million ramp loan from Marathon Asset Management.

The Godfrey Hotel & Cabanas Tampa is a 276-key hotel a 7700 West Courtney Campbell Causeway in Tampa.

The property features the WTR Pool & Grill, a poolside dining and entertainment destination overlooking Tampa Bay.

Oxford acquired the hotel in 2015 and then repositioned it by adding the swimming pool, cabanas, and 15 guest rooms. The company also renovated existing guest rooms, with hardwood flooring and marble counter tops, and redid the lobby with the addition of a café and wine bar.

The waterfront property previously was the longtime spring-training home of Major League Baseball’s New York Yankees. – Mike Seemuth

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Mission Capital Advisors Arranges $28.5 Million in Construction Financing for 218-Key Hilton Property in Fort Lauderdale

19-floor building will include two Hilton hotels:

a 106-key Home 2 Suites and a 112-key Tru by Hilton

 

FORT LAUDERDALE, Fla. (Aug. 10, 2018) — Mission Capital Advisors today announced that its Debt and Equity Finance Team has arranged $28.5 million in non-recourse financing for the construction of a 218-key, Hilton-franchised hospitality property at 315 Northwest 1st Avenue in Fort Lauderdale, Florida. The Mission Capital team of Jordan Ray, Stephen Emery, Ari Hirt, Jamie Matheny and Lexington Henn represented a joint venture of Merrimac Ventures and Driftwood Acquisitions and Development in securing the loan from Bank OZK.

The 19-story property will feature two Hilton-branded offerings. The 106-key Home 2 Suites will be an all-suite facility, featuring an array of in-room and public amenities, including abundant conference and workspace areas and in-room kitchens. The 112-key Tru by Hilton will be designed for young professionals and travelers, and will feature a robust amenity package, including a fitness center, game room and lounge. The two hotels will have separate lobbies, and will each have access to the building’s 102 parking spaces and a 5,000-square-foot outdoor pool deck and bar.

“We’ve done a lot of construction financing for hotels this cycle, but we’ve rarely seen so much lender interest in a deal,” said Ray. “The sponsorship on this property has developed some of the market’s most successful hotels, and they decided to create two Hilton-branded hotels at this property to meet the distinct needs of different market segments. With this financing in hand, construction is already underway, and Fort Lauderdale visitors should be able to enjoy its strong location and amenities by 2020.”

The property is located in Fort Lauderdale’s trendy Flagler Village neighborhood, providing hotel visitors with access to a wide range of art galleries, restaurants and tourist attractions. The hotels will be easily accessible to the beach, Fort Lauderdale International Airport and I-95.

“This deal had a very complex capital stack, including a significant amount of EB-5 financing, but we were able to structure a very strong non-recourse loan for the sponsors,” said Hirt. “The market for construction financing has improved in recent months, and we received a tremendous amount of interest from foreign and regional banks, insurance companies and mortgage REITs. The execution was very strong, and we were able to move the deal in record time, going from term sheet to closing in less than 60 days.”

 

 

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.www.missioncap.com.

$29M Construction Financing for Fort Lauderdale Dual- Branded Hilton Development

August 14, 2018

Mission Capital Advisors arranged $28.5 million in non-recourse financing for the construction of a 218-key, Hilton-franchised hospitality property in Fort Lauderdale’s trendy Flagler Village neighborhood. A joint venture of Fort Lauderdale-based Merrimac Ventures and Driftwood Acquisitions and Development secured the loan from Bank OZK.

The 19-story property at 315 Northwest 1st Ave. will feature two Hilton-branded offerings. The 106-key Home 2 Suites will be an all-suite facility, featuring an array of in-room and public amenities, including conference and workspace areas and in-room kitchens. The 112-key Tru by Hilton will be designed for young professionals and travelers, and will feature an amenity package that includes a fitness center, game room and lounge.

The two hotels will have separate lobbies, and will each have access to the building’s 102 parking spaces and a 5,000-square-foot outdoor pool deck and bar.

Mission Capital’s Jordan Ray, Stephen Emery, Ari Hirt, Jamie Matheny and Lexington Henn represented the JV.

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JV Lands $29M Construction Loan for Fort Lauderdale Hilton

Mission Capital Advisors arranged the financing on behalf of Merrimac Ventures and Driftwood Acquisitions and Development, to begin building a dual-brand, 218-key project.

August 15, 2018

A joint venture between Merrimac Ventures and Driftwood Acquisitions and Development has secured $28.5 million for the construction of a new Hilton-franchised hotel in Fort Lauderdale, Fla. Mission Capital Advisors arranged the non-recourse loan through Bank OZK, on behalf of the partnership.

Located at 315 Northwest First Ave., the hotel will feature a total of 218 keys across two properties. The 106-key Home 2 Suites will be an all-suite asset, featuring amenities such as conference and work space, as well as in-room kitchens. The 112-key Tru by Hilton will be designed for young professionals and travelers, offering features such as a fitness center, lounge and game room. Both hotels will offer access to 102 parking spaces and a 5,000-square-foot outdoor pool deck and bar. The 19-story property will provide convenient access to Fort Lauderdale International Airport, Interstate 95 and nearby attractions such as beaches, restaurants, art galleries and tourist spots.

Mission Capital Advisors’ Debt and Equity Finance team of Principal Jordan Ray, Managing Directors Stephen Emery and Ari Hirt, Director Jamie Matheny and Vice President Lexington Henn, represented the borrower.

“We’ve done a lot of construction financing for hotels this cycle, but we’ve rarely seen so much lender interest in a deal,” said Ray, in a prepared statement. “The sponsorship on this property has developed some of the market’s most successful hotels, and they decided to create two Hilton-branded hotels at this property to meet the distinct needs of different market segments. With this financing in hand, construction is already underway, and Fort Lauderdale visitors should be able to enjoy its strong location and amenities by 2020.”

In April, Mission Capital Advisors represented a joint venture of The Schupp Cos. and LodgeWorks Partners in securing $47 million in refinancing for Hyatt Place Arlington Courthouse Plaza, a 168-key hotel in Virginia.

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Mission Capital Advisors Arranges $21 Million
Acquisition and Construction Loan for Chelsea Luxury Condo Conversion

 

Capital advisor structures non-recourse financing at competitive pricing

NEW YORK (July 20, 2018) – Mission Capital Advisors announced that its Debt and Equity Finance team arranged $21 million of non-recourse acquisition and construction financing for 214-216 West 15th Street, a luxury six-unit condo conversion in Chelsea. The Mission Capital team of Raymond Salameh, Ari Hirt, Steven Buchwald, and Lexington Henn represented developer Holliswood Development in structuring the loan from a Philadelphia-based debt fund.

For Holliswood, the competitively-priced loan fills a sizable portion of the project’s $29-million capital stack. The loan funds both the acquisition of the building and the subsequent construction costs when the project is permit-ready.  With construction financing in hand, the developer plans to capitalize on the vitality of the Chelsea neighborhood and convert the former nursery school building to six luxury condominiums with best-in-class amenities. Once complete, the residences will feature 10-foot ceilings, private balconies, and well-appointed, top-of-the-line kitchens.

Holliswood purchased the building — which had functioned as a nursery school since 1902 — from the Archdiocese of New York, which led to an approvals process that required sign-off from the New York State Attorney General, the Archdiocese, and the Vatican.

Located near the border of Greenwich Village and Chelsea, the property is located in one of Manhattan’s most vibrant areas, providing convenient access to a range of shopping, dining and nightlife options.

 

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.www.missioncap.com.

Arden Credit Lends $21Mln for Development of Upscale N.Y. Condos

July 20, 2018

Arden Credit Fund has provided $21 million of financing to fund the acquisition and redevelopment of 214-216 West 15th St., a six-unit residential condominium property in Manhattan’s Chelsea neighborhood.

The non-recourse loan, arranged by Mission Capital Advisors, funded Holliswood Development’s $12.65 million purchase of the property, the former Nazareth Nursery, from the Archdiocese of New York. The property had operated as a nursery school since 1902. In addition, the loan will allow Holliswood of New York and its partner, Firm Capital Corp. of Toronto, to redevelop the two 25-foot wide buildings into six luxury condo units that will have 10-foot ceilings, private balconies and high-end kitchens. The development cost is estimated at $29 million

Arden Credit Fund is an alternative-lending vehicle sponsored by Arden Group of Philadelphia. The investment manager was aiming to raise $150 million for the vehicle, which funds mezzanine loans and other relatively short-term lending instruments against commercial real estate properties.

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Former Nursey School Set for Condos in Chelsea

July 23, 2018

Mission Capital Advisors’ debt and equity finance team has arranged $21 million of non-recourse acquisition and construction financing for 214-216 W. 15th St., a luxury six-unit condominium conversion in Chelsea. The Mission Capital team of Raymond Salameh, Ari Hirt, Steven Buchwald, and Lexington Henn represented Holliswood Development in structuring the loan from a Philadelphia-based debt fund.

For Holliswood, the competitively-priced loan fills a sizable portion of the project’s $29-million capital stack. The loan funds both the acquisition of the building and the subsequent construction costs when the project is permit-ready.

Holliswood purchased the building, which had functioned as a nursery school since 1902, from the Archdiocese of New York, necessitating approvals from the state Attorney General, the archdiocese and the Vatican. With construction financing in hand, the developer plans to capitalize on the vitality of the Chelsea neighborhood and convert the former nursey school building to six luxury condos.

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