Hospitality Portfolio Acquisition

Lending - CMBS - $10.8M

Greystone provided $10,880,000 in financing for the acquisition of a two-property limited service hospitality portfolio in Kinston, North Carolina. Originated by Joe Mosley‍, Jr., the financing included a traditional $9,775,500 CMBS senior loan and a proprietary Greystone CMBS mezzanine loan of $1,104,500.

The hospitality properties in Kinston, NC, which included a Holiday Inn Express and a Hampton Inn, were acquired by sponsors Rajesh Patel, Narendra Patel, Hetal Patel, Kalpesh Patel, and Prashant Patel. The acquisition financing included a 10-year term and 30-year amortization period.

Greystone launched its proprietary CMBS mezzanine financing product, providing loans between $500,000 and $5,000,000, to enable an acquisition or refinancing where a new CMBS senior mortgage falls short of desired leverage.

Additional terms for Greystone CMBS mezzanine loans include:

• 5- and 10-year terms; coterminous with first mortgage loan
• LTV: 75-85% of appraised value or purchase price depending on asset type
• Amortization: Interest-only, or consistent with senior mortgage loan
• 12-15% coupon varying with LTV, DSCR, market and sponsor
• Non-recourse

“Having the flexibility to provide mezzanine financing on top of a traditional CMBS loan opens the playing field for investors at the sub-$20 million acquisition level, and for Greystone to serve as a lender in a growing number of ways and asset classes,” said Mr. Mosley. “We are thrilled to have been able to finance this acquisition for the Patels as they grow their portfolio.”