PMZ Realty Capital LLC Completes $37.5 Million Bridge Loan for Hotel MC – Autograph by Marriott.


PMZ Realty Capital LLC, a boutique real estate investment banking firm, completed a $37.5 million bridge loan for the new 159-key MC Hotel, an Autograph by Marriott hotel, in Montclair, NJ on behalf of The Pinnacle Companies and The Hampshire Companies. PMZ Realty Capital specializes in hotel real estate investment banking nationwide, with an expertise in sourcing capital for the hospitality industry. The loan is a 3-year term with a floating rate based on LIBOR and was funded by a public mortgage REIT.

“PMZ Realty Capital thrives on challenging deals.  What made this financing unique was that we completed it prior to the hotel’s opening (soft opening July 18, 2019) and returned cash to the sponsor” commented Michael Sonnabend, Managing Member, PMZ Realty Capital LLC. “This is a winning outcome for the joint venture between The Pinnacle Companies and The Hampshire Companies and the Township of Montclair gains a first class, new hotel.”

The MC Hotel is the first full service hotel developed in Montclair, NJ since 1938. The hotel anchors the Montclair Center Gateway Redevelopment Plan, known as CentroVerde, a $120 mixed use development. The Pinnacle Companies and The Hampshire Companies developed the hotel which is only 13 miles from West Midtown Manhattan. The property includes a rooftop bar and lounge with views of Manhattan, over 8,500 square feet of meeting and event space, a farm-to-table restaurant and a lobby library.

“Urban redevelopment projects are complex and navigating the challenges is what we are passionate about, as together with The Hampshire Companies, we bring the MC Hotel to the Township of Montclair” remarked Brian M. Stolar, President, The Pinnacle Companies. “Working with PMZ Realty Capital on the financial structuring of the deal is a crucial element to the project’s success and we relied on their hotel financing expertise.”

Norman Feinstein, Vice Chairman of The Hampshire Companies noted that “PMZ Realty Capital provided their substantial expertise and experience in hotel financing for this brand new Marriott Autograph property.”

This is the second loan arranged by PMZ Realty Capital for this project. The MC Hotel will be managed by the Aparium Hotel Group.

About PMZ Realty Capital LLC

PMZ Realty Capital LLC is a boutique real estate investment banking firm that operates on a nationwide basis. Their advisory services are highly specialized with the singular goal of creating the most advantageous capital structure for their clients. PMZ Realty Capital LLC is a national leader in hospitality financing focusing on debt and equity financing, note sales, joint ventures, recapitalizations and real estate advisory services.

For more information about PMZ Realty Capital LLC or to contact the firm to finance your next hotel, contact Michael Sonnabend, Managing Member, PMZ Realty Capital LLC at (212) 277-8252.

About The Pinnacle Companies

The Pinnacle Companies is a Montclair, NJ based privately-held, regional real estate development firm. Pinnacle is a developer of residential, commercial and retail properties with a geographic focus on New Jersey, New York, Connecticut and Florida. Pinnacle Communities was founded in 1984 by Brian M. Stolar. The Pinnacle Companies, LLC worked with the Township of Montclair to create the Montclair Center Gateway Redevelopment Plan, known as CentroVerde, which includes The MC Hotel and the mixed-use Valley & Bloom project.

About The Hampshire Companies

The Hampshire Companies is a privately-held, fully integrated real estate operating company and private equity real estate investment fund manager that has over 50 years of hands-on, cycle-tested experience in acquiring, developing, leasing, repositioning, managing, financing and disposing of real estate. Presently, Hampshire is the sponsor of more than $1 billion in equity under management in various commingled, fully-discretionary real estate investment funds, with an overall aggregate value of approximately $2.5 billion. The Hampshire Companies is headquartered in Morristown, New Jersey. Hampshire currently owns and operates a diversified portfolio of 259 properties across the country totaling over 23.2 million square feet.

PMZ has refinanced a substantial portion of our portfolio: 18 loans for both limited and select service hotels across four states, in excess of $200 million total in-debt financing. I always value PMZ’s insight into the current state of the financing market. They are always responsive, enthusiastic and have in depth knowledge of the financing markets. I am confident that PMZ would add value as financial consultants/brokers from their experience in the hospitality industry.

Hasmukh (H.P.) Rama
Auro Hotels (Formerly JHM Hotels), Chairman of the Board

PMZ has worked with our franchisees for over two decades financing all of the Hilton brands.  They have extensive experience with our brands and in the capital markets and have provided outstanding customer service.  Their business consistently finds creative financing solutions for our licensees, which, in turn, helps the Hilton Franchise Development Team achieve our growth objectives. PMZ brings trust and commitment to our franchisees.  We look forward to continuing our relationship with PMZ and recommending them to our franchisees in the future.

Bill Fortier
Senior Vice President Development, Hilton Worldwide 

We have worked with the PMZ team for many years.  They have done exceptional work for us in securing great financing for our assets in multiple locations.  They are professional and knowledgeable in all aspects of real estate finance.  

Mitch Patel
President & CEO, Vision Hospitality Group

I’ve had the opportunity to complete a dozen debt and equity transactions with Mike and Peter over the past ten years and value their financial and business insight. They bring innovative ideas and fresh thinking to each of their deals, and helped structure both debt and joint venture transactions that exceeded our expectations. Above all, we respect them and their firm as trustworthy advisors who are focused on their clients and their needs.

Ashish Parikh
Chief Financial Officer, Hersha Hospitality Trust

PMZ and their team of experts has been arranging financing for IHG owners for over 20 years. Their deep understanding of the hospitality industry, and the capital markets, has allowed many of our owners to secure the necessary financing to grow and expand their portfolios. PMZ has always and continues to put relationships first by acting with transparency and professionalism throughout their entire process. We appreciate what they do for IHG and the hotel industry as a whole.

Julienne Smith
Chief Development Officer, The Americas IHG Hotels & Resorts

I have worked with PMZ for over 10 years and during that time have had nothing but positive experiences.  They deliver at closing exactly what they promised at the beginning of the project.  PMZ has helped Sun Companies secure over $150 million in financing for such brands as Hilton, Marriott, and IHG.  Their business is relationship-based, therefore, they are the perfect partners for us and essential to our company’s growth.

Bharat Patel
Chairman & CEO, Sun Development Company

I’ve completed a myriad of transactions over the past 10 years with Mike and Peter and their clients. Through the ups and downs of the real estate market cycle, they have consistently presented us with transactions that are attractive based on current market dynamics. Throughout the process from origination to closing they have been a strong advocate for their clients, and on more than one occasion, thought of an innovative solution to structure around significant issues. Their creative thinking has benefited their clients and made me confident that once we begin a transaction, it will lead to a successful closing.

Michael Amoia
Director, NY based insurance company

I initially called Peter and Mike several years ago when I was seeking refinancing of two of our properties in Pennsylvania. The lender we were working with at the time had changed the terms on us several times. I explained the situation to them, and they assured me that they would close at the same exact terms or better than originally quoted. Not only did they close at better terms then originally outlined, but they exhibited a sense of professionalism and integrity that every intermediary should possess. I have since worked with Peter and Mike on several other transactions, and their high level of service is consistent. I would recommend the PMZ without hesitation to anyone seeking financing.

Atul Patel
CEO, HMB Management, Allentown, PA

Our firm currently operates over 75 hotels and restaurants in the upper midwest. When we wanted to arrange financing for eight of our limited and full service hotels in Iowa and Kansas, we started working with Peter after he was highly recommended by several of my peers. He did not disappoint us. He understood our unique local markets and secured $60 million from a national insurance company. We have since engaged his firm several other times to arrange financing for us. There is no doubt in my mind that the professionalism and knowledge of PMZ will benefit anyone looking to finance or refinance hotels.

Bruce Kinseth
Executive Vice President, Kinseth Hospitality Companies

The loan arranged by PMZ allowed us to retire our existing financing and provided a stabilization period for the Embassy Suites now that the renovation is complete. By providing us with multiple financing options, PMZ helped us find the best lender suited to our specific needs.

David Marvin
Founder and President, Legacy Property Group

PMZ has brought us multiple financing quotes and helped us select the one most advantageous to the ownership group. They have consistently helped us navigate the closing process flawlessly.

Danny Patel
CEO Peachstate Hospitality, Former Chairman Asian American Hotel Owners Association (AAHOA)