X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

THE WOODLANDS, TX-Recently launched OMC Capital Inc. has provided $130 million in financing to Equity Venture Management Group in Texas to refinance a portfolio of 12 limited-service hotels throughout the Lone Star state. The six-year loan is equal to 315 basis points above LIBOR, with a four-year interest-only term, a two-year fixed principal rate and debt service based on a 25-year amortization.

“The loans on the properties were due to mature by the end of this year, and they wanted to do it now rather than later,” comments OMC Capital senior managing director Kevin Kent. “Their bank actually called them and told them to contact us.”

Kent tells GlobeSt.com the hotels are all unflagged, but the borrowers had been around for awhile and knew the industry, which raised OMC Capital’s level of comfort. “We decided to take a chance on them,” Kent comments.

The deal brings OMC Capital’s total transaction volume to close to a quarter of a million dollars since its May 2009 launch. The private commercial mortgage REIT was formed to acquire or originate debt for financing of senior housing, multifamily and hospitality product. Kent says OMC Capital will look at anything that can boost returns through repositioning, capital improvement or financial reorganization, so long as it fits into the hospitality, multifamily or senior housing component.

“We’re dealing more with the private guys than the institutions,” Kent says. If the institution has a single asset, “we’ll take a look at it,” he explains. “But if it’s a portfolio, probably not.” Furthermore, he continues, CMBS-backed assets are off-limits. “Those tend to have a lot of junk in them,” he comments.

Kent says since the company’s launch in the spring, it has bought and originated debt for product in Texas, though now the company’s scope is national. “We’re finally climbing out of an isolated footprint,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.