PMZ Realty Capital has secured a loan for more than $18 million in financing for the soon-to-be-open DoubleTree by Hilton Fresno, Calif. The property will be unflagged as it undergoes a renovation for a period of up to 12 months.
“The financing of this property presented some unique challenges as it will not retain a franchise affiliation during its year-long renovation. Despite theuncertainty which precluded many lenders from providing a non-recourse fixed rate transaction, PMZ was able to obtain extremely favorable ‘vanilla’ financing,” said Michael H. Sonnabend, managing member, PMZ Realty Capital-Hotel Finance Group. “We were thrilled to help move this project forward and prove to be a strong partner during the process. As we continue to grow our business on the West Coast, this deal shows our strength and ability to ‘get things done’ through the most advantageous capital structure for our clients.”
“We were pleased to work with PMZ and gain terms allowing us to repay the existing debt and still provide $6 million to renovate the property and convert it to a Doubletree by Hilton,” said Ed Chan, of the ownership group. “The 10 year term with 30 year amortization and an interest rate below 5% will allow theproperty to be positioned favorably to succeed once the renovation is complete. It’s a win-win situation for everyone involved.”