Wisconsin property receives loan for PIP, reflagging to DoubleTree

DT Racine
PMZ Realty Capital LLC, a national boutique real estate investment banking firm focused on creating advantageous capital structure for their clients, has arranged a $8.1-million-dollar non-recourse loan for the DoubleTree by Hilton Racine, Wis. The loan had a low fixed interest rate of below 4.5 percent. The property has been without a franchise and is converting to the DoubleTree by Hilton flag within the next 12 months.

"This non-recourse loan offered the ability to get creative for our client Graves Hospitality," stated Michael Sonnabend, managing member, PMZ Realty Capital-Hotel Finance Group. "PMZ was able to negotiate a deal without a franchise in place that allowed our client to utilize the funds to pay off current debt and fund the PIP to convert the property to a DoubleTree."

The 121-room full-service hotel is about to undergo a $2-million upgrade to the entire property and is located just 26 miles south of Milwaukee's General Mitchell International Airport, and an hour drive north of Chicago. It is just a 10-minute drive to North Beach and the Racine Zoo. The property is adjacent to the city's marina with spectacular views and within blocks of the downtown business district's shopping, art galleries and unique restaurants.

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