Three California Hotels Receive Financing

NEWPORT BEACH, CA—GlobeSt.com has learned exclusively that Lone Oak Fund has provided financing for three separate California hotel properties, including the Newport Beachwalk Hotel here. The loans were for both acquisitions and refinancing purposes for properties with a combined total of 140 rooms.

Lone Oak partnered with two other lenders to provide financing for the $7.1-million acquisition of a pool of investment properties here that included the 16-room boutique Newport Beachwalk Hotel, which features a ground-floor restaurant, quadruplex and beachside cottage. Lone Oak provided a $3.6-million first trust deed, at a rate of 8.3% interest-only for a six-month term. In addition, the firm sourced a junior lender that provided the second trust deed, while a third trust deed from a private-equity investor rounded out the capital stack. All three loans closed concurrently in less than two weeks.