Radco Cos. acquires 6 Florida hotels for $83M

HREC Capital Markets Group, the capital markets team within HREC Investment Advisors, arranged $83.3 million in financing for The Radco Cos.’ purchase of six branded select-service hotels in Florida.  

The 583-room portfolio acquired by Radco’s hotel division comprises the 84-room Courtyard by Marriott Panama City, 90-room Courtyard by Marriott Pensacola, 128-room Courtyard by Marriott St. Petersburg Downtown, 89-room Hampton Inn Panama City Beach, 109-room Fairfield Inn & Suites Panama City Beach and the 83-room Home2 Panama City Beach.  

The cross-collateralized loan facility served to finance acquisitions from three sellers, with funding dates spanning a period of three weeks. The non-recourse loan facility was provided by a national bank lender and features a five-year term, a fixed rate, a two-year interest-only period and a $6.3 million line of credit to fund property improvements.

The negotiations were led by Greg Porter, SVP of capital markets, and Mike Armstrong, principal and head of capital markets, both based in HREC’s San Diego office. “After a thorough marketing process, we identified a lender willing to offer superior terms due to the strength of sponsorship and improved credit profile of a single crossed loan facility across assets in three distinct submarkets,” Porter said in a statement. “The first funding involved a simultaneous closing on three hotels with two sellers, the second funding occurred the day Hurricane Ian made landfall, and funding of the St. Petersburg hotel occurred shortly thereafter.” 

“In spite of current capital markets challenges affecting hotel financing, the quality of this opportunity attracted the attention of multiple lenders allowing our client to choose the best financing solution to fit their needs,” Armstrong added.