Black Bear Capital Partners, a real estate financial advisory firm and subsidiary of Black Bear Asset Management, has arranged $27.5 million in hotel financing which includes the acquisition of a corporate-owned Motel 6 in San Jose, Calif. Suraj Desai, Black Bear Capital Partner’s senior managing director, arranged both components of the financing package.
The recent transaction includes a one-year, $23.1 million floating-rate, non-recourse loan, with full-term interest-only payments, which represents a 75 percent LTV, to fund the acquisition of the 204-room Motel 6 in San Jose. The subject property is being sold by Blackstone, a global investment firm with more than $230 billion of commercial real estate under management. The borrower is a private investor.
BBCP separately arranged mezzanine financing for the borrower. The one-year, $4.4 million fixed-rate loan structured a portion of proceeds to facilitate the acquisition of the San Jose hotel at 91.6 percent LTC.
The Motel 6 hotel is six miles away from downtown San Jose.
“The property is in a prime location,” said Desai, who works out of the BBCP office in Chicago. “Corporate owned hotel assets are always a great purchasing opportunity for experienced hotel owner operators. The leveraged one-year loan products will allow our borrower to maximize their equity contribution through cutting operational inefficiencies and increasing value through continued performance ramp up.”