The owner needed to refinance a CMBS loan, Goldstein explains. Fortunately it was a low leverage loan--in the neighborhood of 50%--for a relatively small amount, lower in fact than the $17-million refi amount. Of all the real estate asset classes, hotels have borne the worst of the capital crunch and economic crisis, Goldstein says--and this transaction was originally met with disinterest from lenders when Cassidy & Pinkard Colliers first began to market it.
Goldstein credits a small thaw in the lending environment as a partial factor in securing the $17 million; the larger driver, though, was the hotel itself and the fact that the bank was familiar with it. It is an upscale brand that benefits from its proximity to the government facilities of Fort Belvoir, Quantico Marine Base, and the Pentagon. "It has a loyal customer base of visitors to these facilities that come back year after year," Goldstein says. "The bank knew the property and sponsorship and put an aggressive quote on the table."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
