NEBO Capital Arranges a Loan on a Smaller Hospitality Asset

NEBO Capital recently arranged a hotel loan on an 86-key, recently-renovated asset. This was a back-leverage transaction after the sponsors acquired the asset in an all-cash deal. Despite the moderate leverage request and solid cash flow of the property, the deal faced many challenges. These included lack of seasoning, a smaller loan balance, a tertiary market, a limited service flag, as well as many legacy issues.

NEBO identified several national platforms and recommended a national bank that was able to execute a five-year bridge loan in a timely manner. The coupon was commensurate with that of lower-cost bridge shops that would not bid on the asset for the reasons outlined above. NEBO also found that a higher leverage alternative on this asset would be possible for a premium. The borrower elected to take a more conservative loan. 

Call NEBO Capital for your placement today. We are a dedicated team for your bespoke deal needs.