Mission Capital Advisors Arranges $37M for Siegel Suites

LAS VEGAS-Mission Capital Advisors, a leading national real estate capital markets solutions firm, says that its Debt & Equity Finance Group has arranged approximately $37 million in financing on behalf of the Siegel Group Nevada, Inc., a privately held real estate investment firm. The financing is part of a comprehensive debt restructure recently completed by the Siegel Group.

The Siegel Group, which operates 21 flexible-stay apartment communities in Las Vegas known as Siegel Suites, engaged a Mission Capital team led by managing director Jordan Ray on two assignments to assist in capitalizing and completing the last tranche of a $300 million debt restructuring by the Siegel Group.

While The Siegel Group owns and operates a sizable portfolio of properties throughout Nevada and California that include multifamily, retail, office, boutique hotel and hotel-casinos assets, the debt restructure was solely limited to Nevada assets that the company acquired before the downturn. Making the debt restructure more challenging was that a majority of the original lending institutions had either sold the loans to third-party investors or failed and had been taken over by the FDIC.

In the first transaction, Mission Capital arranged $26.9 million in financing collateralized by four Siegel Suites communities. Mission Capital located a CMBS lender, which provided 10-year, fixed-rate, non-recourse financing.

“We were able to excel in these transactions by carefully explaining to lenders the unique no-lease-required business model of the Siegel Group, highlighting Stephen Siegel's operational experience and by demonstrating that the properties had strong financial performances in both good times and bad,” Ray said. “This stability is especially impressive in Las Vegas, which was one of the hardest hit markets in the country during the downturn.”

In the second transaction, Mission Capital accessed the Los Angeles office of an international commercial bank, which provided $9.98 million in first-mortgage financing for three Siegel Suites communities. The lender provided a 15-year term with a 30-year amortization and a 4-percent interest rate.

Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, AL.

The Siegel Group, a Commercial Real Estate Investment & Business Development Company founded by Stephen Siegel with offices located in Las Vegas, Nevada and Studio City, CA,specializes in the acquisition, disposition and development of under-performing, value-added real estate and businesses with significant turn-around potential. The group's assets include a variety of businesses and a commercial real estate portfolio comprised of multi-residential apartment complexes, flexible-stay, boutique resorts, hotel-casinos, retail, office, restaurant, bars, and nightclubs.