Terrace Capital, Inc. – Non-Recourse Senior Debt Financing- $13.7MM - Sheraton Hotel & Resorts - Augusta, GA.
Terrace Capital announced today that it has secured $13.7MM in non-recourse financing for a 152-room, Class A, full-service Sheraton hotel in Augusta, Georgia.
New York, NY, July 14, 2012 --(PR.com)-- The Sheraton Augusta, named the Sheraton of the Year for 2012, is situated on a 6.94-acre site located at 1069 Stevens Creek Road in Augusta with amenities that include indoor/ outdoor heated pools, fitness facility, business center, meeting rooms, restaurant and a club lounge. The property was constructed by Palmetto Hospitality and opened for guests in December 2009.
The proceeds of this $13.7MM, 69% loan-to-value CMBS loan were used by the borrower, Palmetto Hospitality, LLC, for the refinancing of a high-interest rate bridge loan that had been used to take out the construction financing. The senior debt has a 10-year fixed term and a 30 year amortization schedule. Palmetto Hospitality’s principal, Dr. Harinderjit Singh, owns and operates multiple other flagged hotel properties in Georgia. The non-recourse, permanent financing will allow Dr. Singh to cut his debt service payments in a half on the Sheraton and reduce his personal, contingent liabilities by $13.7MM, facilitating opportunities for construction financing.
Commenting on the closing, a senior underwriter stated, “It was a pleasure to assist Dr. Singh with this CMBS loan. While hospitality financing can be a challenge in the current market, Terrace was able to structure a loan for this well-performing property at a competitive rate. Terrace Capital’s success in this arena makes us a valued resource in the hotel industry, and we are currently evaluating approximately $100MM in other hotel financing requests, including several requests for new construction.”
About Terrace Capital
Terrace Capital focuses on non-recourse loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
The Firm is a leader in providing permanent mortgages and equity for wide range of real estate transactions.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.
The proceeds of this $13.7MM, 69% loan-to-value CMBS loan were used by the borrower, Palmetto Hospitality, LLC, for the refinancing of a high-interest rate bridge loan that had been used to take out the construction financing. The senior debt has a 10-year fixed term and a 30 year amortization schedule. Palmetto Hospitality’s principal, Dr. Harinderjit Singh, owns and operates multiple other flagged hotel properties in Georgia. The non-recourse, permanent financing will allow Dr. Singh to cut his debt service payments in a half on the Sheraton and reduce his personal, contingent liabilities by $13.7MM, facilitating opportunities for construction financing.
Commenting on the closing, a senior underwriter stated, “It was a pleasure to assist Dr. Singh with this CMBS loan. While hospitality financing can be a challenge in the current market, Terrace was able to structure a loan for this well-performing property at a competitive rate. Terrace Capital’s success in this arena makes us a valued resource in the hotel industry, and we are currently evaluating approximately $100MM in other hotel financing requests, including several requests for new construction.”
About Terrace Capital
Terrace Capital focuses on non-recourse loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
The Firm is a leader in providing permanent mortgages and equity for wide range of real estate transactions.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.
Contact
Terrace Capital
John Dragone
212-671-1031
www.terracecapital.com
John Dragone
212-671-1031
www.terracecapital.com
Contact
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