Mag Mile Capital Completes $16.5 Million CMBS Loan for Two Hotels Properties in Texas

CHICAGO – Mag Mile Capital is pleased to announce that Rushi Shah, Principal and CEO; Rob Bernstein, EVP, Capital Markets & Originations; Senior Vice President Michael Taylor; and Vice President Prabhat Jayara have completed a $16,500,000 non-recourse, CMBS loan on behalf of Nexgen Management for two hotel properties. Shah and Taylor originated the loan and Senior Vice President Heather Madsen provided the closing services and completed the loan processing.

“This was a very delicate transaction due to the borrower needing cash from one transaction to close on the other,” said Taylor, “and due to the rigid closing guidelines of the seller, Blackstone Group, timing was of the essence.”

The borrower, Uppal ‘Paul’ Singh of Nextgen Management, came to Mag Mile Capital to refinance a Homewood Suites by Hilton property in order to use the cash-out to acquire an additional hotel, a Residence Inn by Marriott. Mag Mile Capital secured a 10-year non-recourse CMBS Loan closed at a 5.40% interest rate with a 25-year amortization and 70% loan-to-value ratio for the borrower. The financing provided cash-out of the existing loan to acquire the Residence Inn, as well as obtain funding for Property Improvement Plans (PIP) for the new acquisition.

“In addition to the strict closing dates, we had to defease an existing CMBS loan for the Homewood Suites asset and use the cash out as equity for the acquisition of the Residence Inn,” said Shah. “We used our relationship and experience to get the defeasance company to buy the bonds even after missing the deadline. We were also able to successfully move the deal to a different institution, the largest CMBS investor in the country, mid-process and as a result we were able to deliver an even better outcome for the borrower in the form of higher total loan proceeds and better interest rates.”

Located at 3759 North Drive in the border town of Brownsville, Texas, the three-story Homewood Suites is a 66,340 square foot, 86-room extended stay hotel built in 2000 and renovated in 2016. Built in 2005, the Residence Inn by Marriott is located at 310 Lost Oaks Boulevard in Laredo, Texas and is 67,691 square feet with 109 extended stay rooms.

"Closing a CMBS loan with Mag Mile Capital was an extremely smooth and efficient process. Their team is well versed in these type of loans which in conjunction with their hospitality background allowed for an efficient process despite the intricacies of the deal,” said Singh. “The entire team is a pleasure to work with and we look forward to working with Mag Mile Capital on future projects."

“We worked through numerous logistical challenges to get this loan closed and we appreciate our client’s patience throughout the process and thank him for putting his trust in Mag Mile Capital,” added Bernstein. “We also thank our capital partner, Citigroup, who delivered the deal per the original term sheet, as they have done for us time and time again.”


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