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| 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.
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| 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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