Financing the Purchase of Hotel with Income Projections and
Conventional Loan in Maryland
Prince Frederick, MD
Scientific Capital arranges a conventional loan for the acquisition of the Springhill Suites of Prince Frederick of Maryland. This is a 10 year fixed rate loan in the 4% range and approved at 75% Loan to Value. Conventional hotel loans with 10 year fixed term and higher Loan To Value are harder to find and that is why many hoteliers resort to the CMBS loans. However, this conventional loan benefited our client with much lower fees and none of the limitations and the restrictions customary to a CMBS loan such as sweep and escrow accounts. Having financed many hotels in the past three years, many lenders are having high concentration on hotel assets and lack of appetite for new conventional loans specially at higher Loan To Value but in spite of that, Scientific Capital was able to arrange this loan with very attractive terms and to close in only 40 days from the submission of the loan package to the funding just before reaching the 1031 expiration date.
Our Other Projects With This Client
Finance the purchase and PIP at 85% LTV on projection basis