FOUR POINTS BY SHERATON MIAMI AIRPORT | MIAMI, FL

CASE STUDY - REFINANCING



​$13,750,000

​LOAN-TO​​-VALUE: 60%

​SPREAD: 268 

​ALL-IN RATE: 5.58% 

​TERM: 61 Months

• Our client’s objective was to refinance the property to take out its construction loan, challenging CBRE to ​procure approximately five-year financing that (i) lined up with the debt on two other adjacent properties in their portfolio and (ii) offered the flexibility to sell all or part of the portfolio after year four with little to no prepayment penalty.

• Newly constructed 124-room select-service hotel located within one mile of the Miami International Airport.

• 60% LTV ($110,900 per room) approximately five-year fixed-rate loan with two years interest-only.

• The challenge was to convince the lender of the property’s premium valuation even though it wasn’t yet fully stabilized and had less than one year of operating history.

• Despite the fact some lenders had concerns of saturation, looking closely at the market’s inventory and pipeline, the CBRE team negotiated an approximately five-year loan that matched our client’s requested structure with little to no prepayment penalty.

​RESULT: The CBR​E team negotiated a five-year loan that matched our client’s requested structure with prepayment flexibility that suited their strategy of disposing the assets in four to five years.
 

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