October 03, 2016
Aries Capital has secured a $6.3 million non-recourse CMBS loan for a 94-key Comfort Suites in Waco, Texas on behalf of the borrower, T.J. Patel of Pavansut Hotels, LLC.
The borrower used the 10-year fixed rate non-recourse permanent loan to pay off an existing full-recourse SBA loan. Not only does the new loan arranged by Aries alleviate the burden of unnecessary personal guarantees for the borrower, it was closed at a significantly lower rate than the previous financing. In addition, the borrower was able to take the necessary cash out to fund an upcoming required franchise PIP and to fund future acquisitions.
“Mr. Patel was referred to us through AAHOA (Asian American Hotel Owners Association) and other clients after other capital sources failed to close his non-recourse loan at the terms promised,” said the originator. “Early in the transaction neighboring Baylor University’s football program faced a public scandal. Because of our relationship with the lender and Mr. Patel’s top notch management of the hotel, we were able to get the credit committee comfortable around the issue. We closed the deal at an attractive rate within a tight capital market, and despite the uncertainty of this key demand driver.”