CHICAGO – Mag Mile Capital is pleased to announce that Senior Vice President Francisco Nacorda has completed a $22,500,000 non-recourse loan on behalf of a private borrower for two hotels in Dearborn, Michigan: a Holiday Inn Express located 24041 Michigan Avenue and a Staybridge Suites located at 24105 Michigan Avenue.
The Holiday Inn Express features 107 rooms and the Staybridge Suites has 102 rooms. The hotels were opened less than three years ago by the Borrower, Malik Abdulnoor of Stellar Hospitality, a member of the Chaldean Chamber of Commerce.
“This deal serves as a perfect example of how our process and our strong relationships lend to win-win solutions for everyone involved,” said Nacorda. “The refinance of these two hotel properties was completed at extremely competitive terms with an eight figure cash-out and due to our platform’s relationship with the lender, even though the appraised value came in short of the stipulated loan-to-value, we were able to convince the lender to keep the loan amount at the same level as they had agreed at the start of the transaction.”
Mag Mile Capital secured a 10-year fixed rate of 3.9% for the non-recourse permanent loan with a 25-year amortization. The refinance loan, provided by one of the world’s largest investment banks, afforded the borrower cash-out beyond their cost basis to recycle the capital for growth.
“The experience we had with Francisco Nacorda and the Mag Mile Capital team was second to none,” said Abdulnoor. “They made the closing process the smoothest we have ever experienced and their close relationships with Wall Street banks makes it easy to close deals smoothly even in a turbulent market. As a result, we were able to refinance and put in place an optimal financing at a very low interest rate.”
“There was a tremendous amount of volatility in the debt markets as we were closing this deal, but we were able to close at a rate lower than the floor rate agreed on at the beginning of the transaction due to our deep relationship with the lender,” added Rushi Shah, principal and CEO of Mag Mile Capital. “Highly accomplished clients like Malik are core to our existence. Commercial Real Estate finance is a long game and we appreciate the importance of repeat business and client satisfaction.”
About Stellar Hospitality
Stellar Hospitality works to create value for its partners and associates by leveraging its operations, development, sales and marketing, technology, accounting, and operational management expertise to grow its portfolio of first-class hotels. The company’s successful management and development track record over the past 40 years is evidence of the unique and diverse mix of skills of the team. For more information, visit www.stellarhospitality.com.
About Mag Mile Capital
Chicago-based Mag Mile Capital is a full-service, commercial real estate mortgage and investment banking firm. The boutique firm offers preferred access to best-in-class debt placement, equity arrangement, tax credit syndication, real estate brokerage and advisory through a high-touch, disciplined approach that leverages its extensive lending relationships and deep-rooted client and equity sponsors. During the past 27 years, team members have collectively funded over $8.5 billion in debt, equity, tax credit and mezzanine financing for hotel, multifamily, office, retail, industrial, healthcare, self-storage and special purpose properties throughout the United States and the Caribbean. For more information please visit www.magmilecapital.com.