PALM BEACH, FL, Aug. 17, 2011—Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale extended-stay hotels and premium-branded select-service hotels, announced today that it has closed on a $15.8 million fixed-rate mortgage loan.
Sonnenblick-Eichner Company arranged the $15.8 million first mortgage non-recourse financing, which is secured by the 124-room Residence Inn by Marriott (top left photo) located in New Rochelle, N.Y.
The 10-year loan was provided by Regions Bank and carries a fixed interest rate of 5.75 percent per annum, with principal and interest based on a 25-year amortization. Proceeds from the loan will be used to repay outstanding borrowings under the company’s secured revolving credit facility and for general business purposes.
“This is the eighth individual property loan for our portfolio, giving us combined borrowings from such loans of approximately $162 million at a weighted average rate of 5.97 percent and a weighted average maturity in 2017,” said Dennis Craven, Chatham’s chief financial officer.
“We were able to add this financing at historically attractive pricing and at a value which amounts to approximately 75 percent of what we purchased this hotel for less than a year ago.”
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing, as well as joint-venture equity transactions.
The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types, including retail, office, hospitality, industrial and multifamily properties.
Contact:
Dennis Craven (Company), Chief Financial Officer,
(561) 227-1386,
Jerry Daly or Carol McCune, Daly Gray (Media), (703) 435-6293
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