Aries Capital Arranges $6.7 Million CMBS Loan for Reflagged NC Wyndham Garden Inn HotelJune 11, 2015
Aries Capital has arranged a 10-year, $6,700,000, non-recourse, CMBS loan with cash out for the refinance and reflag of the Quality Inn hotel at 440 Griffith Road in Charlotte, NC to a Wyndham Garden Inn. The commercial real estate loan was originated on behalf of borrower Sunny Bhawnani, president of Vision One Hospitality in Charlotte, NC.
A seasoned hotel owner and operator, Bhawnani contacted Aries in need of hotel financing to refinance a current bank loan and fund the PIP to convert the then Quality Inn to the Wyndham Garden Inn brand.
Aries presented Mr. Bhawnani with two options. The first was to refinance to a short-term bridge loan, execute the reflag and then after a couple of years of operation, refinance to permanent debt. Because Mr. Bhawnani had good cash flow on the property, and didn’t want to go through the process twice or gamble on future interest rates and the health of capital markets, he chose to go with the second option and put permanent debt on now with a hold back for the PIP. In the end he was able to complete the reflag process before the loan closed, and the held back funds were released.
“Aries worked very hard to understand my business goals and I appreciated that they offered me more than one viable solution. I was pleased with the results of this transaction, and will definitely utilize their talents again in the future,” said Bhawnani.