Credit Suisse re-enters CMBS market with hotel deal

Credit Suisse has re-entered the new-issue CMBS market for the first time since shedding its commercial real estate loan origination business in 2011, reports IFR. The bank is pre-marketing the $186.8m CSMC 2014-SURF transaction, underpinned by one two-year, floating-rate commercial mortgage loan.

The loan has five one-year extension options, and is secured by a first-priority lien mortgage on the borrowers’ interest in the 198-room Shutters on the Beach hotel and the 129-room Casa del Mar hotel, both resorts in the Santa Monica/Los Angeles area.

The mortgage loan is interest-only for its entire term, meaning there will be no scheduled amortization during the loan term.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


“The hotels’ reputations, oceanfront locations, and recent $21.3-million renovation and redevelopment are competitive advantages against many of their Santa Monica and Beverly Hills competitors,” said Richard Reilly, who led a team of S&P analysts that rated the new offering.

The loan has an initial two-year term with a February 2016 initial scheduled maturity, with five, one-year extension options.

 

Read more on

Suggested Articles

During a conference call hosted by advocacy organization Economic Innovation Group, industry leaders emphasized the need for immediate fiscal help.

Many hotel owners will find themselves in the uncomfortable and unfamiliar position of deciding on a course of action for negotiating with their lende

The company intends to raise $100 million from investors to source mezzanine loan and preferred equity transactions in the hospitality sector.