BELLEVUE, Wash., September 29th, 2014 – Premier Capital Associates, LLC, a national, full-service real estate investment company specializing in debt and advisory services for hospitality real estate, announced today that they refinanced the Hilton Garden Inn Springfield, Oregon for approximately $14MM.
The refinance enabled the borrower to replace high interest debt and take advantage of long term, low fixed rates.
“Hotel loans have been percolating for the last twelve months to a point not seen since prior to the financial crisis” said Greg Morris, managing director of Premier Capital Associates. “Due to increased competition between banks, lenders are beginning to consider each property’s dynamic situation and have been able to keep mortgage leverage around the 70% loan-to-value level.”
Jeff McKee, Managing Partner at Premier Capital Associates points out that “Obviously, we are experiencing a lot of pent-up demand. For the last five years, lenders were limited to a maximum of 15-20 percent hotel loans within any securitization and demanded a premium, quoted low LTVs and were very selective on what loans they would consider. Now that the premium is non-existent, hotel borrowers are taking advantage of the current lending market.”