ORLANDO, FL—MidCap Funding has arranged an $8.6-million loan for the refinance of two WoodSpring Suites-branded hotels totaling 226 rooms here.
The five-year loan was structured with a 25-year amortization schedule and executed via CMBS. Loan proceeds were used to take out the existing acquisition financing and provide the borrower with cash out proceeds. Taylor W. Grace, managing partner at MidCap Funding, negotiated the refinance on behalf of the borrower, an affiliate of Hotel Management Services Inc. (HMS), headquartered in Johnson City, TN.
“The challenge with this transaction was in finding a lender who would recognize the significant value created in a relatively short period of time from acquisition,” said Grace. “By familiarizing the lender with the exceptional team that HMS has put in place, combined with their history of improving the operations of similar properties, we were able to complete this transaction successfully.”