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| Greg Friedman |
ATLANTA, GA Sept. 22,
2014—Stonehill Strategic Capital, LLC (“SSC”), an affiliate of Peachtree Hotel
Group II, LLC (“Peachtree Hotel Group”), today announced the first closing of
Stonehill Strategic Hotel Credit Opportunity Fund, with initial equity
commitments to purchase approximately $50 million of interests.
The fund will use the proceeds from its offering to provide permanent mortgages,
bridge loans, mezzanine debt, preferred equity and discount note purchases, with
a target of acquiring or originating up to $300 million of hotel financing.
The
fund will assemble a portfolio of debt instruments secured by premium branded,
limited- and select-service hotels in secondary markets, geographically
dispersed throughout the United States.
Proceeds from the fund will enable SSC
to swiftly and efficiently underwrite and quickly close at higher loan-to-value
levels, giving SSC a unique advantage over its competitors and traditional bank
lenders.
“We provide creative financing structures along with higher
leverage debt positions to allow borrowers to reduce their equity requirements
on acquisitions, refinancings and recapitalizations,” said Greg Friedman,
CEO of both Peachtree Hotel Group and SSC.
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| Matthew Crosswy |
“Our fund will play
a key role in completing the capital stack.
In addition to providing first mortgages, we will provide mezzanine debt
and preferred equity financing structures.
"Our lending program will allow for total leverage of up to 85 percent
loan to cost. Our extensive experience and relationships in the hotel industry
will help us identify and execute viable transactions.”
“We believe the current hotel environment and outlook
continues to offer excellent opportunities for experienced hoteliers,” said Mat
Crosswy, president of SSC. “While
debt funding is more readily available, obtaining higher leverage remains
difficult for most borrowers. That’s
where we believe this fund will excel.”
“Our past capital deployment programs have achieved tremendous
results for our borrowers and investors thus far, and we look forward to
continued, positive growth.”
For a complete copy of the company’s news release, please contact:
Chris Daly, media
(703) 435-6293
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