Bridge financing for hotel properties in most US markets.  This very competitve product is an affiliate program for qualified major flagged/franchised hotel properties, including:

Best Western
Choice Hotels
Clarion
Comfort Inns & Suites
Econolodge
Fairmont
Hilton
Holliday inn
Hyatt
Intercontinental
Marriott
La Quinta
Quality Inn
Radisson
Renaissance
Residence Inn
Sheraton
W hotels
Westin
Wyndham

 

LOAN AMOUNT
$10.0 million to $50 million

MARKETS
Primary and Secondary Markets

ELIGIBLE PROPERTIES
High Quality: Hotel properties 

SECURITY
First Lien Mortgage

TERM (YEARS)
2-3 years, with extension options to 5-years

AMORTIZATION (YEARS)
Full term - IO

LOAN TO VALUE/COST
Max 90% as is LTV and 80% LTC

MAXIMUM EXIT LTV
70%

MINIMUM EXIT DEBT YIELD
9% (no mkt rent growth) 

MINIMUM DSCR AT CLOSING
Interest reserve for any coverage below 1.0x

INTEREST RATE
CALL (subject to change)

RECOURSE
Non-Recourse, limited in certain cases, e.g. for completion of renovations

PREPAYMENT
3 year: Lock (12), 1% (12), 0.5% (6), Open (6)
2 year: Lock (12), 1% (6), Open (6)

ASSUMABLE
No

FUTURE FUNDING
Yes, with limitations and based on the transaction underwriting 

ORIGINATION FEE
1%-4% of Loan Amount, plus 1.0% afiiliate fee paid at closing

EXTENSION FEES (TO LENDER)
Subject to performance hurdles
3-year term: 25 bps per extension
2-year term: 25 bps, 50 bps, 75 bps per extension

EXIT FEES (RETAINED BY LENDER)
1.0% - 2.0% of Loan Amount (waived if affiliate provides take-out)

BORROWER
High quality sponsor with demonstrated track record of executing the proposed business plan for the asset

RESERVES
Taxes, Insurance, and as necessary Capital/TILC/Debt Service as reasonable determined by the Lender

OTHER
Lender reserves the right to bifurcate the financing into A, B and Mezz Notes