02.11.19

PMZ Realty Capital LLC Secures $25 Million Cash out Loans for Trio of Hilton Hotels

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PMZ Realty Capital LLC, a boutique real estate investment banking firm, has secured three hotel loans totaling $25 million. PMZ Realty Capital specializes in hotel real estate investment banking nationwide, with an expertise in sourcing capital.

The three Hilton brands refinanced are the 112-room Hilton Garden Inn in Flowood, Mississippi, the 70-room Hampton Inn in West Point, Mississippi and a 90-room Tru by Hilton in McDonough, Georgia

Deal highlights include:

Hilton Garden Inn – Flowood, Mississippi

PMZ Realty Capital obtained a 10-year, non-recourse CMBS loan with 30 year amortization for this 112-room property.  “The owner focused on a successful transaction that allowed cash back in the deal to complete the investment goals,” stated Michael H. Sonnabend, Managing Member, PMZ Realty Capital. “Our extensive network of lenders allowed us to source the right deal and the property is the only full service hotel in the market with easy access to the airport.”

This 112-room Hilton Garden Inn features airport shuttle service, an outdoor saltwater pool and a full service restaurant.  The property is located in the Dogwood Festival Plaza near a myriad of dining options.  Local attractions close to the hotel include Winner Circle Park, the Mississippi Coliseum and Refuge Golf Course.

Hampton Inn – West Point, Mississippi

Working with lenders, PMZ Realty Capital assisted the hotel owners to secure a 10-year, non-recourse CMBS loan with 30-year amortization. “Solid Hilton brands are successful even in tertiary markets“ commented Michael H. Sonnabend, Managing Member, PMZ Realty Capital. “Satisfied owners appreciate when PMZ Realty Capital leverages its relationships with lenders to execute a deal and provide cash out opportunity on invested equity.”

Tru by Hilton – McDonough, Georgia

“This deal represents both the power of the Tru by Hilton and our ability to forge new ground in the CMBS sector,” said Michael H. Sonnabend, Managing Member, PMZ Realty Capital.  “The CMBS loan met RevPAR Development LLC’s strategic goals and we able to work closely with lenders to create a new way to complete a transaction in the hotel real estate sector.”

This CMBS loan was a 10 year, non-recourse loan with 30-year amortization. Opened in 2017, the 90-room, four story hotel had limited operating history, creating the unique challenge of convincing underwriters to undertake the cash out refinancing. Working with underwriters partners, PMZ Realty Capital offered guidance on the hotel’s emerging category, brand strength, operating capabilities and track record of RevPAR Development LLC.

“This cash out financing is a boost for RevPAR Development”, said Pete Patel, President & CEO,RevPAR Development LLC. “This is our second transaction using PMZ Realty Capital during the previous twelve months.  We appreciate PMZ’s steady guidance, detailed process and proactive advocacy to complete the refinancing quickly. Completing this transaction allows RevPAR Development LLC to grow by increasing our financial flexibility.”

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 Peter Berk, President, PMZ Realty Capital LLC at (212) 277-8265.

About RevPAR Development LLC

Since its inception in 1998, RevPAR Development LLC has grown to be one of the top privately owned hotel development/management companies on the East Coast. RevPAR Development LLC takes pride in providing superior service to our guests by nurturing and developing potential in our extraordinary team members. It is our mission to provide each guest service to the highest of standards and an overall exceptional experience.

When our company wanted to convert the Intercontinental Hotel on Central Park South in New York City into luxury residences, I knew who to call first. Within 30 days, Peter was able to secure an application for $110 million worth of financing. The loan included multiple layers of capital representing over 90% of the costs to complete the project. He coordinated multiple parties through the due diligence process in order to ensure a smooth closing. I have worked with Peter and Mike on several other deals as well and their service and dedication are consistently outstanding. PMZ Realty Capital is my financial intermediary of choice.

Steve Glascock
President, Anbau Enterprises