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| Matthew Crosswy |
ATLANTA, GA —Stonehill Strategic
Capital, (SSC) an affiliate of Peachtree Hotel Group focused on hotel
financing, today announced that it has ramped up its lending platform and plans
to deploy approximately $200 million, primarily in mezzanine and bridge loans
for hotel assets and development over the next 12 months.
The company targets the $1 million to $10 million loan range
for mezzanine loans and $3 million to $20 million for bridge financing.
“Hospitality and lodging fundamentals have continued to strengthen,
driving a surge in transaction activity," said Mat Crosswy,
president of SSC.
“However, buyers are facing a shortfall in the capital stack
due to banks’ reluctance and conservative nature when underwriting hospitality
credits.
“SSC realizes that every deal is unique and can provide
potential borrowers an edge with higher leverage loans coupled with creativity,
timeliness and flexibility in their execution, when speed and certainty of
close may matter most.
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| Jatin Desai |
“The majority of bridge and mezzanine lenders today focus on
larger transactions and major markets, while community banks continue to shy
away from hotel lending, except in their own, limited footprint.
“This makes it harder for smaller owners and investment
groups, especially those in secondary and tertiary markets, to obtain
sufficient financing to complete an acquisition or execute a needed
renovation.
“Because of our extensive
background in the hotel industry, we are comfortable looking at any type
of property/location and responding quickly.”
SSC
Principal Jatin Desai said that SSC’s bridge and mezz loans will
complete the capital stack up to 85 percent loan-to-value (LTV), with two- to
five-year terms.
The company offers competitive rates that vary depending on
the specifics of the transaction and strength of sponsors. SSC foresees the bulk of its lending going
towards acquisitions and refinancings, with some limited new development,
preferably in premium brands in the select-service and extended-stay categories
throughout the U.S.
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| Greg Friedman |
“From a
financing perspective, we are optimistic that the demand for debt will continue
to be robust in 2014 given the on-going normalization of the capital and
transaction markets,” Greg Friedman, SSC principal.
“Already, we are
experiencing strong interest in our mezzanine programs where borrowers are
utilizing the funds to complete the capital stack and lock in a historical low
senior loan rate.
“We also are seeing borrowers utilize our bridge programs to
execute quickly on value- added-type transactions or transactions that have a
short window for execution.”
Since
launching in the third quarter of 2013, Stonehill Strategic Capital closed and
funded five transactions. In addition
to providing loan financing, Stonehill Strategic Capital also purchases first
mortgage notes. The company via
affiliates purchased eight first mortgage notes in 2013.
“As lenders continue
to move distressed mortgages off their balance sheets, we expect that this
market will remain fertile and that we will acquire as many as 10 to 12 notes
over the next 12 to 18 months,” Friedman added.
For a complete copy of the company’s news release, please
contact:
Chris Daly, media
(703) 435-6293
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