by Adriana Pop, Associate Editor
Vista Capital Co. has negotiated and closed $7.7 million of financing for the five-story Staybridge Suites hotel in downtown Indianapolis. The 10-year CMBS loan was provided by a European-based group of investors who were attracted by the market and the strong performance of the asset.
The extended-stay, InterContinental-branded hotel was built in 2000 by its current owner. The property offers 146 rooms, along with a variety of amenities, including a business center, a fitness center and an indoor pool.
The pricing for the non-recourse, fixed-rate financing arranged by the Los Angeles-based real estate capital intermediary is approximately 4.5 percent. The funds will retire the existing loan on the property, and support a renovation project in 2015.
“Ownership was able to accomplish a number of difficult objectives via this transaction,” said Zak Selbert, the founding principal at Vista Capital. “Despite the fact that many lenders are over-allocated in hospitality paper, the borrower benefited from Vista’s ability to structure long-term, fixed-rate hospitality financing that will guarantee a smooth renovation in 2015. The financing will also decrease the owner’s cost of capital,” Selbert added.
This is the second hotel financing transaction Vista Capital has closed in the last four months in metropolitan Indianapolis. In November, the company announced it arranged $17.3 million of financing for the Crowne Plaza Union Station. Located in the heart of the city’s downtown area, the 273-room hotel is listed in the National Register of Historic Places.
In other news, Greystone announced it has closed a $34.6 million HUD loan for Lake Castleton Apartments, a 1,261 unit multifamily apartment community in Indianapolis.
Greystone insured Lake Castleton through a Section 223(a)(7) loan, just 44 days after submission.
“The Section 223(a)(7) program is an expedited way for a borrower who already has a HUD insured loan to refinance its loan for the purpose of lowering the interest rate. We are proud of our experience working with HUD and delighted to be able to provide financing quickly and at the extremely attractive interest rates,” said Betsy Vartanian, head of Greystone’s Federal Housing Administration business.
Photo credits: http://www.ihg.com