The Sheraton Augusta, named the Sheraton of the Year for 2012, is situated on a 6.94-acre site located at 1069 Stevens Creek Road in Augusta with amenities that include indoor/ outdoor heated pools, fitness facility, business center, meeting rooms, restaurant and a club lounge. The property was constructed by Palmetto Hospitality and opened for guests in December 2009.
The proceeds of this $13.7MM, 69% loan-to-value CMBS loan were used by the borrower, Palmetto Hospitality, LLC, for the refinancing of a high-interest rate bridge loan that had been used to take out the construction financing. The senior debt has a 10-year fixed term and a 30 year amortization schedule. Palmetto Hospitality’s principal, Dr. Harinderjit Singh, owns and operates multiple other flagged hotel properties in Georgia. The non-recourse, permanent financing will allow Dr. Singh to cut his debt service payments in a half on the Sheraton and reduce his personal, contingent liabilities by $13.7MM, facilitating opportunities for construction financing.
Commenting on the closing, a senior underwriter stated, “It was a pleasure to assist Dr. Singh with this CMBS loan. While hospitality financing can be a challenge in the current market, Terrace was able to structure a loan for this well-performing property at a competitive rate. Terrace Capital’s success in this arena makes us a valued resource in the hotel industry, and we are currently evaluating approximately $100MM in other hotel financing requests, including several requests for new construction.”
About Terrace Capital
Terrace Capital focuses on non-recourse loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
The Firm is a leader in providing permanent mortgages and equity for wide range of real estate transactions.
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