We are pleased to announce that Aries Conlon Capital has closed on two, non-recourse CMBS permanent loans totaling $9.9 million for Best Western Plus hotels in Washington and California. The loans were arranged on behalf of two separate borrowers. Aries Conlon Capital Associate Suraj Desai originated the loans and Principal & CEO Rushi Shah negotiated the financing structure and helped place the loans. Associate Vice President Prabhat Jayara and Vice President Heather Madsen managed the underwriting and closing.
In the first transaction, Aries Conlon Capital secured a $5.2 million, 10-year fixed rate, non-recourse CMBS loan for the Best Western Plus in Spokane, Washington. The borrower was seeking maximum leverage to refinance the 76-unit property, and wanted to minimize his personal risk by removing recourse. The loan was closed at a 57% loan-to-value ratio and with a 25-year amortization
“The borrower came to us on the recommendation of another one of our clients,” said Desai. “Although the property was in a tertiary market with a limited comp set, we were able to utilize our experience and relationship with the capital source to demonstrate that the property was financeable and deliver maximum proceeds.”
The property is located along I-90, 20 miles from Spokane International Airport and near Liberty Lake, parks, nature conservation areas and the corporate headquarters for Accra Fab, Agient Tech and Alteck Inc.
In the second transaction, Aries Conlon Capital arranged a $4.7 million, 10-year-fixed rate, non-recourse loan for the Best Western Plus in Diamond Valley, California. The loan closed at a 60% loan-to-value ratio and with a 25-year amortization. Desai and the borrower met at this year’s Asian American Hotel Owners Association (AAHOA) National Convention in San Antonio, Texas.
“The borrower had purchased the hotel in 2012 when it was an economy-scale Super 8 and used an out-of-pocket capital injection to upgrade the property to the upper-midscale Best Western Plus flag,” said Desai. “Just 12 months following the conversion completion, we were able to secure permanent debt with substantial cash out, allowing him to recapture his capital contributions.”
“Suraj worked endless hours to compile all of the information needed to get us the best deal available. We thank the Aries Conlon team for a smooth transaction.” – Borrower Nick Mehta of Empire Hotels.
The Diamond Valley hotel is located on Route 74, between Los Angeles and Palm Springs, and in the city center of Hemet, California. The property is close to shopping and retail centers as well as area wineries.