The sponsor required mezzanine financing, for a total of $52,500,000 in lender proceeds, for the acquisition of a 300+ room Motel 6 Portfolio in Las Vegas, NV. The portfolio’s assets are situated in high barrier-to-entry locations, with two in the famed Las Vegas Strip Area and one on the Boulder Strip. The sponsor owns and operates a group of 16 brand-name hotels exhibiting a proven track record in the hospitality sector.
the properties were purchased from Blackstone and operated by G6 Hospitality. The sponsor needed to procure construction financing on a portfolio of hospitality assets, during COVID, with a short window to close and no extension options. As the mezzanine lender, we had less time to not only negotiate terms with the sponsor but to negotiate our relationship with the senior lender through an intercreditor agreement.
We had previously worked with the sponsor, providing funding for other hotel acquisitions in the past. Our council is well versed in complex debt financing matters and was diligent in their execution of our closing documents. All parties were committed to close.