HILTOn garden inn, emeryville

279-room Hilton Garden Inn is located in Emeryville, California

Property Description: 279-room Holiday Inn located in Emeryville, California in the East Bay nearby Berkeley and Oakland. The property is a 1970s construction 13-story full service hotel in need of substantial renovation and a reposition.

Investment Profile: The Sponsor’s business plan was to acquire the project, undertake a substantial renovation of the guest rooms and common areas and add an additional lobby area, and then re-flag the project as a Hilton Garden Inn. The project as a tired Holiday Inn was substantially underperforming the market and had limited cash flow but substantial upside as a newly renovated Hilton Garden Inn.

Loan Amount: $19,000,000

Loan Type: Acquisition and reposition first mortgage bridge loan

Deal Highlights: The property is a non-stabilized hotel (which many lenders will not finance), the loan request was in excess of the purchase price of the project, there was a substantial construction and future funding component and the project was located on a construction fill site in San Francisco Bay. Mesa West Capital overcame the environmental issues and provided a loan to the Sponsor that met its needs and structured the financing to enable the Sponsor to execute its business plan.

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