Refinancing Newly Built Hotel with Conventional Loan Based on Projected Increasing Revenues in Alabama
Scientific Capital arranges a 9.5 million loan for the refinance of the full service Holiday Inn hotel in Hoover, AL. The hotel completed construction in 2011 and needed another year or two of operation to reach full stabilization, higher valuation, and lower loan to value making it qualified for any type of financing. A higher loan to value under conventional programs is harder to achieve in our current market. CMBS Conduit loans generally do not go over 70% on hotels and the banks in the local markets, if not having a portfolio concentration on hotels, generally like to remain at 65% to maximum of 70%. Scientific Capital was able to arrange a loan participated by two regional lenders to reach 77% loan to value on a 10 year loan with fixed rate in low 4%s. The diligence on the side of the Scientific Capital and the willingness to take the tough road of conventional non-CMBS road but also the patience and the well organized business structure and operations of the client was key in placing this loan where the search and the negations with the lenders took nearly about the same amount of time as the processing and the closing of the loan.
What Our Client Thinks of Us
I really enjoyed working with you on the loan for our Holiday Inn in Hoover Alabama. The time essentially was the key factor for this loan and we made it. We closed this loan less then 6 weeks of the day of signed commitment letter. It was a challenge and you proved your ability . We had the issue with appraisal and you found the appropriate legal way to take care it. I will be fortunate to work with you in the future and love to recommend you to others. Let me know if I can further assist you.
Your enthusiasm and your ability to motivate others have resulted in a successful completion of our loan for the Galleria Properties. Lala Enterprises and I, truly appreciate your efforts and the assistance you offered to us in accomplishing this goal. Working from a remote location and having others to provide you with very sensitive personal and financial information is not an easy task. Your polite yet firm and consistent mental as well as physical energy that was exerted in order to achieve a purpose is very commending. Please accept my sincerest gratitude for your superior work and I look forward to work with you on our future projects.