Staybridge Suites, Oconomowoc, WI

OCONOMOWOC, WI—Chicago-based Mag Mile Capital's Mac Dobson and Prabhat Jayara completed a $9.925 million non-recourse, CMBS loan for a 128-room hotel property located at 1141 Bule Ribbon Drive in Oconomowoc, WI for KGNMP Hotels. Dobson and Jayara co-originated the loan while Ian Carlos closed the loan.

“The borrower originally approached a local bank in their network for an acquisition loan; however, the bank was not able to arrange the loan,” says Dobson. “He encouraged the borrower to speak with us given our expertise sourcing hotel financing. We packaged the deal and sourced best-in-market terms, including a 79.5% loan-to-purchase price. That's a leverage point that is very difficult to replicate in the capital markets for any asset class, let alone a hotel in a tertiary market.”

Located in Waukesha County, west of Milwaukee, the hotel property is one of several owned by the borrower in Northern Illinois and Wisconsin. Mag Mile Capital was able to secure the 10-year, fixed rate loan at a 5.75% interest rate and a 25-year amortization.

“This was one of two assets being purchased from the same seller, who required that the two transactions close simultaneously,” says Jayara. “With that asset being financed through an existing relationship of the sponsor, we were presented with an additional contingency that we obviously had less control over. By keeping all parties, including those working on the other acquisition, organized and on track, we closed with plenty of time remaining on the contract period.”

“It was a pleasure working with Prabhat, Mac and the whole team at Mag Mile Capital. Being first time CMBS borrowers, they made navigating the details relatively easy,” says George Patel, borrower representative at KGNMP Hotels. “Given our tight time frame to close, the team worked professionally and diligently to help us meet our deadline. I look forward to working with Mag Mile in the future.”