Saturday, July 9, 2016

Continental Funding Group Secures $19 Million in Financing with Cash-Out Component for Courtyard by Marriott Hotel in Baldwin Park, CA

Courtyard by Marriott, Baldwin Park Submarket, Los Angeles, CA

BALDWIN PARK, CA  – Commercial real estate investment banking firm Continental Funding Group has successfully secured $19 million in fixed-rate refinancing for Courtyard by Marriott, a 195-room select-service hotel in the Baldwin Park submarket of Los Angeles, California.

The financing was arranged by Continental Funding Group President Mitch Paskover.

Mitch Paskover
“The financial markets for commercial properties have made a tremendous comeback over the last several years, yet the market for limited hotels is still a bit conservative,” says Mitch Paskover President of Continental Funding Group.

“Many lenders believe the hospitality industry may be reaching a plateau as rising occupancy and average daily rates have tapered off, indicating a potential slowdown in the tourism sector.”

            Paskover adds that the boom in hotel construction, a 19.5 percent increase from 2014 to 2015 according to a CoStar report, further raises uncertainty among lenders as to whether the hotel market can sustain this growth, as the additional supply may potentially impact the industry moving forward. 

“As a result, securing a lender for a hotel, particularly a limited-service one, requires a strategic and out of the box approach, which is exactly what we did,” continues Paskover.

The Courtyard by Marriott in Baldwin Park was originally built as a Hilton, followed by an affiliation with Radisson, before becoming franchised as part of the Marriott chain in 2004. The sponsor requested a fixed-rate, non-recourse loan that would refinance the existing maturing loan, as well as provide a substantial cash-out component.

For  a complete copy of the company’s news release, please contact:

Katie Kea / Lexi Astfalk

Brower, Miller & Cole

(949) 955-7940

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