NEW YORK, June 14, 2013 /PRNewswire-iReach/ -- Terrace Capital announced today that it has secured $10.25MM in non-recourse financing for a 194-room, 5 Star, full-service Hilton Garden Inn located in Southfield, MI. The Hilton Garden Inn- Southfield, one of the top rated hotels in the region, is situated on a 2.6 acre site located at 26000 American Dr. Southfield, MI with amenities that include an indoor heated pool, fitness facility, business center, meeting rooms, restaurant and a club lounge. The property was constructed by A&M Hospitality and opened for guests in 2012.
The proceeds of this $10.25MM, 69% loan-to-value CMBS loan were used by the borrower, A&M Hospitality, for the refinance of recourse, local bank construction debt. The new, non-recourse senior debt has a 10-year fixed term and a 25 year amortization schedule and contained substantial cash out. A&M Hospitality's principal, Akram Namou, owns and operates multiple other flagged hotel properties in Michigan and Ohio. The non-recourse, permanent financing will allow the sponsor to cut his contingent liabilities and continue to draw on his lines of credit for new hotel development loans.
Commenting on the closing, a senior underwriter stated, while hospitality financing can be a challenge in the current environment, particularly in the state of Michigan, Terrace was able to structure a loan for this well-performing property at a competitive rate. Terrace Capital's success in this arena makes us a valued resource in the hotel industry, and is looking forward to financing approximately 10 other well performing hotel properties, owned and managed by A&M Hospitality, including a request for new construction.
About Terrace Capital
Terrace Capital focuses on non-recourse, permanent loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
The company recently re-started its small balance bridge lending program, which focuses on non-bank lending opportunities in the $500M to $5MM range on residential and commercial properties in all 50 states.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.
Media Contact: Media Relations Terrace Capital, Inc, 212-671-1044, firstname.lastname@example.org
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SOURCE Terrace Capital, Inc.