PMZ Realty Capital announced it has closed a $94.65-million high-leverage loan, representing 85 percent of the total costs necessary to acquire and renovate a portfolio of eight hotels in New Jersey and Pennsylvania representing 934 keys. The total interest rate for the transaction was approximately 5.50 percent.
The portfolio of hotels included in the loan are the Courtyard by Marriott in Westhampton, New Jersey; Fairfield Inn & Suites in Mount Laurel, New Jersey; Fairfield Inn Exton, Pennsylvania; Hampton Inn in Denville, New Jersey; Hampton Inn in Mount Laurel, New Jersey, Springhill Suites in Voorhees, New Jersey, Wingate by Wyndham in Voorhees, New Jersey; and the Comfort Inn in Philadelphia.
“The properties were acquired by a Texas based hotel company looking to expand their geographic footprint. The location of these particular hotels all lie on the East Coast, which allows the owner to break into an entirely new part of the country that has high barriers to entry,” said Peter Berk, President, PMZ Realty Capital-Hotel Finance Group. “The complex transaction involved both first mortgage financing and three layers of mezzanine financing, which ultimately got the owner significant financial leverage at very attractive rates.”