ARIES CAPITAL ARRANGES $57 MILLION CMBS LOAN FOR GULF COAST HOTELS
CHICAGO – Aries Capital is pleased to announce that the firm’s Senior Vice President, Jeff Bucaro, has arranged a $57 million CMBS loan for three Gulf Coast hotels on behalf of the Borrower, Innisfree Hotels. The loan closed in just 32 days from application, and provided the borrower with a 10-year non-recourse loan to refinance existing debt and fund seasonality reserves. The loan also provided substantial cash back to the Borrower.
Innisfree Hotels had two other financing options in hand. However, despite the tremendous risk of not closing the loan by end-of-month, the Borrower chose Aries’ option due to Aries’ reputation in the hospitality field, the volume of hotel loans Aries has closed, and the strength and expertise of Aries’ capital partners. “When we met with the borrower in February, their loans were maturing in March and they were very far along on two potential financing options including staying with their existing lender,” said Bucaro. “We were able to bring a very compelling offer to the table in just two days, and made the borrower comfortable in our ability to execute on it.”
The portfolio included a Hilton Garden Inn and Holiday Inn Express in Orange Beach, Alabama and a Hampton Inn in Pensacola Beach, Florida, all of which are Gulf Front properties. Securing financing for hotels in the Gulf Coast has been a challenging endeavor due to the negative impact of the Deepwater Horizon oil spill of 2010. Many hotels along the Gulf experienced significant cancelations and occupancy declines due to the sensationalism created by the media. In fact, most of the beaches remained pristine, and had no physical impact from the spill.
“We were very skeptical about Aries’ ability to close a loan of this size and complexity with multiple brands and properties located in two different states in the time required,” said Julian MacQueen, CEO and Founder of Innisfree Hotels. “Aries delivered and fulfilled their term sheet outline without exception and in record time. We are very pleased that we were fortunate enough to have Aries Capital represent Innisfree Hotels.”
Aries Capital Chairman and CEO Neil D. Freeman commented, “We were impressed with Innisfree Hotels leadership and properties, including their skillful management through a down market that was caused by factors outside of their control. We aggressively pursued the deal because we felt confident that we could overcome its complexity and secure an attractive financing solution in the timeframe required. It would be our privilege to represent Innisfree Hotels again in the future.”
Aries Capital, is a national full service commercial mortgage and real estate investment banking firm with offices in Chicago, Houston, and Phoenix.
Since 1991, Aries and its affiliates have arranged and/or directly funded over $3 billion in debt and equity for office, retail, multifamily, healthcare and hotel properties. The company, through its affiliates the Urban Development Fund and Aries Real Estate Fund (AREF) has also provided over $500 million in tax credit and mezzanine financing. Aries provides permanent and interim financing through direct correspondent relationships with regional banks, Wall Street CMBS lenders, life companies, hedge funds, and other institutional investors.
FOR: ARIES CAPITAL
Contact: KT Public Relations, Inc.
Kristy Wenz, email@example.com