NEW YORK, May 21, 2018 (GLOBE NEWSWIRE) -- Greystone, a commercial real estate lending, investment, and advisory company, announced it has provided $10,880,000 in financing for the acquisition of a two-property limited service hospitality portfolio in Kinston, North Carolina. Originated by Joe Mosley, Jr., the financing included a traditional $9,775,500 CMBS senior loan and a proprietary Greystone CMBS mezzanine loan of $1,104,500.
The hospitality properties in Kinston, NC, which included a Holiday Inn Express and a Hampton Inn, were acquired by sponsors Rajesh Patel, Narendra Patel, Hetal Patel, Kalpesh Patel, and Prashant Patel. The acquisition financing included a 10-year term and 30-year amortization period.
Greystone launched its proprietary CMBS mezzanine financing product, providing loans between $500,000 and $5,000,000, to enable an acquisition or refinancing where a new CMBS senior mortgage falls short of desired leverage.
Additional terms for Greystone CMBS mezzanine loans include:
- 5- and 10-year terms; coterminous with first mortgage loan
- LTV: 75-85% of appraised value or purchase price depending on asset type
- Amortization: Interest-only, or consistent with senior mortgage loan
- 12-15% coupon varying with LTV, DSCR, market and sponsor
- Non-recourse
“Having the flexibility to provide mezzanine financing on top of a traditional CMBS loan opens the playing field for investors at the sub-$20 million acquisition level, and for Greystone to serve as a lender in a growing number of ways and asset classes,” said Mr. Mosley. “We are thrilled to have been able to finance this acquisition for the Patels as they grow their portfolio.”
About Greystone
Greystone is a real estate lending, investment and advisory company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Our range of services includes commercial lending across a variety of platforms such as Fannie Mae, Freddie Mac, CMBS, FHA, USDA, bridge and proprietary loan products. Loans are offered through Greystone Servicing Corporation, Inc., Greystone Funding Corporation and/or other Greystone affiliates. For more information, visit www.greyco.com.
PRESS CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com