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Permanent Loan Financing
Holiday Inn – Holland, Michigan

Milestone Realty Services worked in a mortgage brokerage capacity to procure permanent re-financing for the 168-unit Holiday Inn located in Holland, Michigan.

Property
The Holiday Inn is a 168-unit first-class full service hotel located along US 31 in Holland, on Michigan’s west coast. This property was originally developed in 1987 and has consistently been ranked among the highest quality Holiday Inns in the United States.

Owner Objectives
Milestone was approached by a regional hotel developer who wished to take advantage of the favorable interest rate environment to re-finance this property, which like many hotels, has recently experienced declines in revenue. It was the objective of the Owner to rely upon the strength of the Holland lodging market and the quality of the underlying asset to obtain the maximum loan amount at competitive rates and terms. Milestone was retained because of its experience in and knowledge of the hotel industry and its contacts among the national and regional lending communities.

Solicitation
Milestone quickly ascertained the positive aspects of the project through its experience in hotel lending and the overall hotel market, and prepared a Request for Financing Proposal, a comprehensive offering package on the project which detailed the property’s proposed amenities, location, facilities, development team, and operating projections in a format that could be understood by national as well as local lending sources. Milestone utilized its vast network of national and institutional lenders to identify the eventual first mortgage lender. Milestone personnel have a significant background in the development, management, valuation, and financing of hotel properties, which proved invaluable in this assignment.

Milestone’s extensive knowledge of lenders active in hospitality related projects and lending sources was important to this process as it significantly streamlined the initial phases of lender solicitation. Milestone’s understanding of the project and its knowledge of the Holland market and the hotel industry in general was a valuable asset in the successful completion of this loan.

Negotiation & Closing
Milestone received and analyzed several proposals from local, regional, and national lenders, met with these lenders, and assisted in the flow of information. Milestone ultimately aided the owner in the selection of the lender. While many mortgage brokers’ services stop with a signed commitment letter, Milestone continued to work with the developer in the negotiation of a commitment letter, coordination of due diligence, and review of loan documents, all to ensure a timely closing.