He is starting to see signs of that now. "Lenders see signs ofstabilization [in these markets] so they feel they can underwriteand be comfortable that the fundamentals won't deteriorate in theshort run."
Right now refinancing is the easiest financing to be had forhotels in these markets, he says. Sonnabend recently helped theHilton Hotel in Downtown Silver Spring secure a $23-millionnonrecourse refinancing from a publicly-traded mortgageREIT.
A year ago such a deal would have been impossible--not onlybecause of the nonrecourse component but also because it is a hoteltransaction.
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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.
