Hotel is Ace Hotels’ first “Sister City”-branded property

NEW YORK (March 20, 2019)

Mission Capital Advisors announced that it has arranged $80 million of bridge financing for the recently completed Sister City hotel, a 200-key hospitality property located at 225 Bowery, at the intersection of the SoHo and Lower East Side neighborhoods of Manhattan. The Mission Capital team of Jonathan More, Steve Buchwald, Ari Hirt and Jamie Matheny arranged the first-mortgage financing from Bank Hapoalim on behalf of a partnership between Omnia and Northwind Group.

After purchasing the property, Omnia and Northwind commenced a major construction campaign, adding three floors and transforming the century-old building into an amenity-laden, food-and-beverage-centric hotel. The first Sister City property created by Ace Hotels, the 14-story building will feature a 234-seat café restaurant, a 150-seat rooftop bar with sweeping views of Manhattan, and a ground-floor garden.

“We see that the Bowery is really becoming a prominent nightlife destination,” said Northwind managing partner Ran Eliasaf. “It has truly become the bridge between the Lower East Side and Nolita in Manhattan.”

A new concept from Ace Hotels, which will manage the property, the Sister City brand brings a fresh experience to travelers, offering comfort, beauty and human connection. Acclaimed for its hotels’ innovative design and development, Ace is one of the premier hotel operators, with nine other properties – and 1,400 rooms – in prime markets across the country.

Omnia and Northwind previously worked together on a number of successful projects, including a luxury rental building at 351 West 54th Street in Hell’s Kitchen, which they sold to Bentley Zhao in 2017 for $34 million.

The Omnia Group is a full-service development, design, and building firm focused on commercial and residential real estate in Manhattan. Run by President David Paz, Omnia has completed over 20 projects in Manhattan with over 475,000 square feet of residential units with a combined value of over $300 million.

The Northwind Group, led by Ran Eliasaf, is a Manhattan based real estate private equity firm focused on commercial, value-add residential, hospitality, and senior-living properties.

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The dual-branded hotel in Amarillo, Texas, will be converted from an existing 229-key property. Mission Capital arranged financing for the project on behalf of developer Ram Hotels.

January 14, 2019

Ram Hotels has secured acquisition and renovation financing to convert an existing hotel in Amarillo, Texas, into the first-ever dual-branded Marriott and Starwood property. The developer will transform the existing 229-key property into a 106-key Marriott Fairfield Inn & Suites and a 123-key Four Points by Sheraton.

Located at 1911 E. Interstate 40, the site is in close proximity to Amarillo’s downtown business district and Amarillo International Airport. The city is the largest in the Texas Panhandle and draws tourists for its events that include the Tri-State Fair & Rodeo.

Amenities at the converted property will feature a 24-hour fitness center, an outdoor pool, patio deck with grills and a fire pit. Additional improvements will include removing the existing atrium, large-scale upgrades to guestrooms and a complete facelift to the property’s facade.

Mission Capital Advisors arranged the non-recourse, floating-rate loan. The team of Raymond Salameh, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny represented Ram Hotels in securing the three-year mortgage from Stonehill Strategic Capital.

Most recently, Marriott rebranded and opened a 186-key Four Points by Sheraton in Toronto.

Mission Capital closes Amarillo hotel loan

February 6, 2018

Mission Capital Advisors’ Debt and Equity Finance group arranged a non-recourse, floating-rate loan for the acquisition and renovation of a 229-key hotel at 1911 East I-40 in Amarillo, Texas.

The existing property, which currently operates as an unflagged hotel, will be re-created as a dual-branded hospitality property comprising a 106-key Marriott Fairfield Inn & Suites and a 123-key Four Points by Sheraton.

The Mission Capital team of Raymond Salameh, Ari Hirt, Steven Buchwald, Alex Draganiuk and Jamie Matheny represented Ram Hotels in securing the three-year loan from Stonehill Strategic Capital.
Stonehill, which specializes in value-add deals, was attracted to the sponsor’s local market expertise.

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One of Mission Capital’s Principals, Jordan Ray, chats about evaluating and working on Hospitality deals. Jordan is a Principal on the Debt & Equity Finance desk at Mission Capital. Explore some of our other Hospitality deals.

JORDAN RAY 10 | HOSPITALITY from Mission Capital on Vimeo.

JORDAN RAY
Jordan Ray is the Principal of The Debt & Equity Finance Group at Mission, which he founded in 2009. Jordan has been honored with such industry awards as the 2016 Real Estate Finance and Investment Magazine – Mortgage Broker of the Year Award, the 2013 and 2012 Observer Top 20 under 35 and the 2017 NYU Schack Institute Financing Deal of the Year. Jordan sits on the board and co founded EquityMultiple – an online marketplace real estate finance company – in 2015. Jordan is also actively involved in UK/European real estate financing.

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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.

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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.”

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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 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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Mission Capital’s, Jordan Ray, discusses the factors in play when choosing our next deal to work on at Mission Capital. Jordan is a principal on the Debt & Equity Finance desk at Mission Capital.

ABOUT JORDAN RAY
Jordan Ray is the Principal of The Debt & Equity Finance Group at Mission, which he founded in 2009. Jordan has been honored with such industry awards as the 2016 Real Estate Finance and Investment Magazine – Mortgage Broker of the Year Award, the 2013 and 2012 Observer Top 20 under 35 and the 2017 NYU Schack Institute Financing Deal of the Year. Jordan sits on the board and co founded EquityMultiple – an online marketplace real estate finance company – in 2015. Jordan is also actively involved in UK/European real estate financing.

LEARN MORE ABOUT JORDAN RAY:
www.missioncap.com/team/?member=jray

LEARN ABOUT THE DEBT & EQUITY FINANCE DESK HERE:
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VISIT MISSION CAPITAL’S WEBSITE:
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Mission Capital’s, Jordan Ray, chats about the range of clients we work with at Mission Capital. Jordan is a principal on the Debt & Equity Finance desk at Mission Capital.

ABOUT JORDAN RAY
Jordan Ray is the Principal of The Debt & Equity Finance Group at Mission, which he founded in 2009. Jordan has been honored with such industry awards as the 2016 Real Estate Finance and Investment Magazine – Mortgage Broker of the Year Award, the 2013 and 2012 Observer Top 20 under 35 and the 2017 NYU Schack Institute Financing Deal of the Year. Jordan sits on the board and co founded EquityMultiple – an online marketplace real estate finance company – in 2015. Jordan is also actively involved in UK/European real estate financing.

LEARN MORE ABOUT JORDAN RAY:
www.missioncap.com/team/?member=jray

LEARN ABOUT THE DEBT & EQUITY FINANCE DESK HERE:
www.missioncap.com/debt-equity/

VISIT MISSION CAPITAL’S WEBSITE:
www.missioncap.com

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Director of Investments Jonathan Lesser sits down with Jonathan Jaeger of LWHA Asset and Property Management Services to discuss the Hospitality asset class and what individual investors should keep in mind as they do diligence on potential investments.

EQUITYMULTIPLE is the only online investing platform backed by an established real estate company – Mission Capital, a leading national real estate capital markets firm. Mission Capital is a technology-forward real estate capital markets firm built on a culture of deep client service. Founded in 2002, our complementary asset sales and capital raising platforms, combined with our diligence and consulting services, allow our institutional and governmental client-base to achieve liquidity and optimize portfolio strategy throughout the credit cycle.

Hotel Investing for Individual Real Estate Investors from Mission Capital on Vimeo.

About EQUITYMULTIPLE

We’re committed to making commercial real estate more accessible for individual investors.
Our team brings diverse industry experience in real estate finance, private equity, law and technology. We were brought together by a shared vision of transforming real estate investing through technology – providing a new level of access to private transactions and streamlining the investment process. While we believe in the transformative power of technology, we recognize that our platform is only as good as the people and experience behind it. We’re committed to transparency, rigorous underwriting, and investor support.

EQUITYMULTIPLE is the only online investing platform backed by an established real estate company – Mission Capital, a leading national real estate capital markets firm. Mission Capital is a technology-forward real estate capital markets firm built on a culture of deep client service. Founded in 2002, our complementary asset sales and capital raising platforms, combined with our diligence and consulting services, allow our institutional and governmental client-base to achieve liquidity and optimize portfolio strategy throughout the credit cycle.

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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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