The new capital for the 2.1-acre property at 1577 Gateway Blvd.retired a $6-million loan from a local bank that was originated forthe 2006 acquisition by three partners, according to Peter Berk,president of New York City-based AFT Hotel Finance Group. "Theybought an under-performing property and through good managementthey created value. They brought in a good sales manager andincreased occupancy," he says.


Berk tells that the hotel, now averaging 80%occupancy, drew offers from three lenders in a debt auction processwith the best terms coming from a US-based portfolio lender. "Itwas a combination of the highest loan proceeds and the lowestinterest rate," he adds, citing the loan was placed in a 60-daystart to finish, sans re-trading.


Berks says today's lending climate didn't create any unduehurdles for the debt auction, pointing out that loans under $10million are better positioned for success. "I think the deals thatare having trouble are $30 million and up," he says. "In the$10-million range, that's an amount banks can bite off and stillsyndicate them."


Dallas Central Appraisal District lists Shree II Siddhi VinayakLtd. as the owner of the 22-year-old Hampton Inn. Internet researchshows room rates hover $110 per day. Berk says the hotel willcontinue to fly the Hampton Inn flag as it has done since itsinception.

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