MidCap Funding arranged a $4.1-million loan for the refinance of a Hawthorn Suites by Wyndham-branded hotel totaling 77 rooms in Charleston, S.C.
The bridge loan was structured as interest-only and executed via a private equity lender. Loan proceeds were used to take out the existing CMBS financing, and to renovate the hotel over the next six months.
Taylor W. Grace, Managing Partner at MidCap Funding, negotiated the refinance on behalf of the borrower. While initially seeking a new CMBS loan, it became apparent that the best execution would be through one of MidCap’s existing private equity relationships. This structure will allow the borrower to renovate the hotel and focus on pushing performance metrics over the next year. Once that has been completed, a long-term takeout via CMBS is anticipated.
The Hawthorn Suites by Wyndham Charleston is located within a short drive of the Charleston International Airport and Charleston’s Historic District. The property offers free Wi-Fi, complimentary breakfast. onsite parking, an indoor pool, a fitness center and more. The hotel is pet friendly.
“Though we faced many challenges with this loan, including a major hurricane (Irma) that disrupted operations and a last minute hold-up due to the first snowstorm in Charleston since 1989, we were able to work closely with the borrower to provide a successful execution," Grace said in a statement. "We intend to continue working with the borrower post-closing to position the hotel for the best possible permanent loan after renovations are complete.”