12.02.14

PMZ Realty Capital LLC Secures Significant Non-Recourse Loans for Hotel Properties in Texas and Indiana

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PMZ Realty Capital LLC, a national boutique real estate investment banking firm focused on creating advantageous capital structure for their clients, announced today they have helped secure three significant non-recourse loans for the Holiday Inn Carmel, Indiana; Hilton Garden Inn Houston Clear Lake, Texas; and the Holiday Inn Express & Suites Houston North Intercontinental.  Each of the hotels hired PMZ to arrange financing for advantageous loan interest rates and to ensure a swift closing.

The 171-key Holiday Inn Carmel property received a $13 million interest-only, non-recourse bridge loan that allowed the owners to get back most of the equity invested in the property, even though it was not yet stabilized at the time of closing. The borrower also recouped over $2 million in funds they had invested in the property for renovations that was now needed for other transactions.

The 126-room Hilton Garden Inn Houston Clear Lake was able to secure a loan sourced by PMZ that was $2 million larger than the loan they were offered by other lenders. The loan closed in 30 days per the owners’ request with a rate below 4.5% for a ten-year term with 30-year amortization.

The 109-room Holiday Inn Express & Suites Houston North InterContinental’s non-recourse acquisition loan was accelerated by PMZ due the nature of the acquisition and provided assurance to the owner of the impending closing. The loan was 70% loan to cost and included all transaction and PIP costs.

“In each of these cases, PMZ was hired to arrange financing that helped expedite the financing and also provide certainty of closing within a short timeframe,” stated Michael Sonnabend, Managing Member, PMZ Realty Capital-Hotel Finance Group. “We were pleased to be chosen for our ability to provide a high-level of service to our clients and obtain these loans on their behalf. These non-recourse loans exemplify our expertise in the financial domain and allowed our clients to remove certain risk associated with higher interest rate loans as well as obtain larger loans than offered by other lenders. We were also instrumental in getting back much-needed equity to reinvest in renovations and other necessary transactions costs.”

PMZ Realty Capital LLC is highly regarding within the hospitality industry for their integrity, creativity and advocacy on behalf of their clients. With over 75 years of combined experience, they are the industry experts and as such, are frequent contributors to industry publications and conferences. The firm approaches each assignment with passion, commitment and dedication to achieving the client’s objectives.

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 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 focused and highly specialized with the singular goal of creating the most advantageous capital structure for their clients. The firm focuses on debt and equity financing, note sales, joint ventures, recapitalizations and real estate advisory services. PMZ Realty Capital LLC is a national leader in hospitality financing and also has an extensive transaction history with other asset classes, including office, retail, self-storage, multi-family and industrial properties.

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