Rushi Shah, principal and CEO of Aries Conlon Capital, closed on three nonrecourse, commercial-mortgage-backed securities permanent loans totaling $17.7 million for the refinance of three hotels: a Hampton Inn in Kingsland, Ga.; a Quality Inn in Biloxi, Miss.; and a Ramada Inn in Portland, Ore. The financing was arranged on behalf of three separate borrowers.
Shah secured a $6.75 million, 10-year fixed rate CMBS loan with 25-year amortization and 60 percent loan-to-value ratio for the Hampton Inn Kingsland in Kingsland, Ga., on behalf of the borrower. Shah successfully structured a special reserve that provided the funds to complete a property improvement plan following the closing.
“Mid-transaction the market experienced a slowdown due to extra supply. We were able to demonstrate to the credit committee that the disruption was temporary, prove that the asset will sustain the debt and subsequently close the loan for the borrower,” Shah said.
The 78-key hotel is 25 minutes from Florida’s Jacksonville International Airport and convenient to local parks, golf and downtown shopping and dining.
In the second transaction, on behalf of a different borrower, Shah arranged a $6.75 million, 10-year fixed rate, nonrecourse CMBS loan with 25-year amortization and 59 percent loan-to-value for the Quality Inn & Suites in Biloxi, Miss.
“The borrower required increased proceeds due to an outstanding FF&E lease on the property that needed to be paid off before closing,” Shah said. “Realizing this deal would be tough and wanting to tap into our expertise and capital source relationships, our competitor brought the deal to us to co-broker. We successfully secured the increased funds to pay off a higher-rate loan.”
Located next to the Mississippi Coast Coliseum and Convention Center and 10 miles from the Gulfport-Biloxi International Airport, the 148-key hotel is convenient to the Biloxi Natatorium, Mississippi Gulf Coast Community College, the Gulfport Dragway, Keesler Air Force Base and local casinos.
The third loan Shah closed was to refinance the Ramada Portland in Portland, Ore. The $4.2 million, 10-year fixed rate, nonrecourse CMBS loan included a 25-year amortization.
“Although the flag is lower on the chain-scale, because the asset was in a strong market, we were able to leverage our long-standing lender relationship to deliver the necessary proceeds for our client,” Shah said.
The 84-key hotel is located 7 miles from the Portland International Airport in East Portland with easy access to interstates 84 and 205 and public transportation. The hotel is close to Hancock Park and the Providence Portland Medical Center, as well as area casinos, retail and dining.