Rushi Shah, chief executive officer for commercial mortgage banking firm Conlon Capital, recently arranged more than $49 million in non-recourse CMBS permanent loans for eight limited-service hotels in Illinois, Michigan, North Carolina, Pennsylvania, Utah and Washington.
The 10-year fixed rate CMBS permanent loans were secured for the following hotels on behalf of their owners:
·$6.95 million with cash-out for a 74-key Hampton Inn in Monroe, Michigan. Shah was able to secure the financing despite the property’s tertiary market and complications with an existing maturing loan on the hotel. The borrowers plan to use the cash-out to build a new property.
·$9.5 million with cash-out for a 141-key Best Western near O’Hare International Airport in Chicago. Although the property had issues before being acquired by Shah’s client, Shah was able to demonstrate the quality of the repeat borrower to arrange the loan and free up the trapped equity.
·$5.6 million including cash-out for a 144-key Quality Inn near O’Hare International Airport in Chicago.
·$6.075 million with cash-out for an 81-key Best Western Plus near Salt Lake City International Airport in Utah. Even with mid-transaction market shifts post the presidential election results, the new loan was secured in time to pay-off an existing SBA loan.
·$5.2 million for a 100-key Comfort Inn & Suites in Birch Run, Michigan. Although located in a tertiary market outside Detroit, the hotel is close to a destination outlet shopping center and generates good cash flow. Mid-transaction, the market took a turn for the worse. Shah leveraged his relationship with the CMBS capital source to champion the borrower, negotiating attractive rates and terms on the borrower’s behalf. The new financing allowed the borrower to eliminate his personal recourse, smoothing the way for his future retirement.
·$3.409 million for a 46-key Best Western Plus Battleground Inn & Suites in Battleground, Washington. Located outside Portland, Oregon and near popular outdoor recreation, the cash-flowing hotel also includes a retail component. Shah was able to structure a deal with cash-out even with the added complexity.
·$6.6 million with cash-out for a 135-key Days Inn in Raleigh, North Carolina. Despite being lower on the chain scale, the hotel is in an active market with solid demand drivers and good cash flow. Shah was able to secure the CMBS loan plus free-up over $3 million in cash-out for the borrower.
·$6.07 million with cash-out for an 81-key La Quinta Inn & Suites in Harrisburg, Pennsylvania. Shah and the attorney worked together to successfully subordinate an existing land loan in order to make the repeat client’s property eligible for the CMBS debt.
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