Jason Roth of PSRS structures $15.8MM in Construction Takeout Financing for Hotel in the Pacific Northwest

Jason Roth of PSRS structures $15.8MM in Construction Takeout Financing for Hotel in the Pacific Northwest

Jason Roth of PSRS recently structured $15.8MM in construction takeout financing for a confidential hotel in the Pacific Northwest. The hotel was completed in July of 2020 during the height of the COVID-19 state lockdowns.

When initially engaged by the borrower in June of 2021, just a month after the local lockdowns were lifted, the PSRS team led by Roth and Matteo Elias was tasked with finding a loan that was 97% loan to value. After a strategic capital search process, the PSRS team was able to secure both a conventional bridge as well as a sale-leaseback financing option for the borrower.

The borrower ultimately chose the sale-leaseback structure due to the overall cost. The new sale-leaseback program from Twain Financial Partners allows the borrower to get greater loan proceeds by selling the land to the lender instead of leasing it from them. The borrower has a right in the loan documents to buy the property back once the property is stabilized at a predetermined price.

“I believe this sale-leaseback program from Twain and others like it will continue to be a force in hotel financing, particularly in higher-cost coastal markets where investors are still recovering from the impact of the mandated lockdowns”, stated Roth.

Feel free to reach out to us with any questions or with any opportunities that you would like to discuss with us!

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