TUESDAY, JANUARY 06, 2009

NorthMarq arranges construction loan for Minneapolis hotel

by Walter Kovacs
Minneapolis-St. Paul

An $11,650,000 construction loan has been arranged by NorthMarq Capital, Inc., for a new 124-room, upscale, residential-style hotel in Minneapolis, Minn., in a joint transaction between NorthMarq's regional New Jersey and Minneapolis.

"Amid the turbulence of the capital markets, our client, a well-established Minneapolis area hotelier, sought financing to build an extended-stay hotel representing one of the Hilton family brands," Dimpesh Darjee, vice president in the New Jersey office, said.

"Through the perseverance and coordination of our offices, we were able to get a national lender comfortable with the sponsor's solid experience and knowledge of the local hospitality market," Gregg Kennedy, NorthMarq vice president in New Jersey, said.

NorthMarq secured 70 percent loan-to-cost financing for the client despite the difficult lending environment.

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