Hampton Inn Hotels - Gaylord and Birch Run

Permanent Loan Financing
Hampton Inn Hotels – Gaylord, Michigan and Birch Run, Michigan

Milestone Realty Services, Inc. worked in a mortgage brokerage capacity to procure permanent loan financing for two Hampton Inn Hotels located in the resort towns of Gaylord and Birch Run, Michigan.

Properties
These properties consist of an 83-unit Hampton Inn located in the northern resort town of Gaylord, Michigan and an 89-unit Hampton Inn located in the Mid-Michigan town of Birch Run. Both hotels were originally built in 1997 and had been purchased by the borrower within the last five years. These properties had recently undergone their “Make It Hampton” renovations.

Owner Objectives
Milestone apprised the property owner, a client of Milestone, of the historically attractive rates and terms that were being offered by fixed-rate lenders. The owner, who had previously financed the properties with short-term floating rate debt, saw the opportunity to procure favorable long-term fixed rate financing, thus generating substantial savings for its investors, while escaping an increasing interest rate environment.

Solicitation
Milestone prepared a Request for Financing Proposal, a comprehensive offering package on the project that detailed the properties’ amenities, locations, facilities, ownership/ management team, and operating histories and projections, and distributed it to those lenders deemed most compatible with a project of this type. Milestone, which maintains working relationships with some of the largest conduit lenders in the country, was able to quickly gain a full understanding of the market’s appetite for these properties and secure proposals for the financing.

Milestone personnel have substantial experience in the development, management, valuation, and financing of hotel properties, which proved invaluable in this assignment.

Negotiation/Closing
Milestone conferred with interested lenders, facilitated site tours, and assisted in the flow of information. Milestone obtained lender proposals and aided the developer in the selection of a Wall Street conduit lender for the permanent loan. While many mortgage brokers’ services stop with a signed commitment letter, Milestone continued to work with the developer in the negotiation of the commitment letter, coordination of due diligence, and review of loan documents.

During the due diligence and closing, Milestone took a proactive role in the satisfaction of the lender’s conditions, all to ensure a timely closing. The experience and expertise of Milestone proved integral to the success of this transaction.