Lending Pace Up 20 Percent over 2007 BELLEVUE, Wash., Sept. 4
BELLEVUE, Wash., Sept. 4 /PRNewswire/ -- Premier Capital Associates, LLC,
a national, full-service real estate investment company specializing in
obtaining debt for hospitality real estate, announced today that it had
arranged and successfully closed on four loans in separate transactions
totaling $22.5 million in the last 60 days. The total, added to transactions
consummated earlier in the year, represents a 20 percent increase in the
company's loan volume over the same period for 2007 for the two-year old
mortgage brokerage firm.
The hotels include the Hampton Inn & Suites, Jackson Miss.; Homewood
Suites, Overland Park, Kan.; the LaQuinta Inn & Suites, Portland, Ore.; and
Fairfield Inn, Kennewick, Wash. The transactions ranged from $4 million to
nearly $10 million per asset and are typical of the kinds of properties with
which lenders are still comfortable, according to Greg Morris, managing
director at Premier Capital.
Six-Month Financing Outlook
"Midmarket properties without food and beverage with proven cash flows can
find lenders in today's credit markets," Morris added. "Larger transactions,
for the most part, have stepped to the sidelines and will likely stay there
for at least several more quarters, when lenders will have a clearer picture
of the political and economic future."
"The abundance of negative media coverage about the debt markets does not
reflect current lending conditions," said Jeff McKee, managing director at
Premier Capital. "There are a substantial number of loans being made. We are
a boutique mortgage brokerage company entering our third year and are 20
percent ahead of last year's activity at the same time. We have a very active
pipeline and have a network of willing lenders."
He noted that traditional lenders, especially local banks, are still
actively financing hotels, but market conditions are constantly shifting.
"Lenders want to work with companies who specialize in obtaining hospitality
debt placement. They want the confidence of dealing with experienced
companies that they know and that have a proven track record. Hotel
transactions today generally require 30 to 35 percent equity, up from 25
percent earlier this year and approximately 15 percent in early 2007," he
said. "Current requirements are closer to historic norms, and deals still
pencil out because interest rates remain quite attractive."
Morris pointed out that the stronger brands in major markets are the
preferred property type, both acquisitions and refinancing. "Ironically, the
lower transaction volume resulting from the current economic climate means
that lenders are able to respond much more quickly than a year ago," he said.
"However, they have less interest in higher risk loans, such as new
construction, conversions and older assets that have a high PIP requirement."
Premier Capital Premier Capital Associates, LLC, located in Bellevue,
Washington, is a national, full-service real estate investment company
specializing in debt for hospitality and other income-producing commercial
real estate, with relationships across the United States. The company
arranges debt for construction loans, acquisition, refinancing, reposition and
mezzanine financing. For additional information, please contact either Greg
Morris at 425-957-0700 or Jeff McKee at 425-957-0600. Or, visit the company's
Web site: www.premiercapitalassoc.com.
Contact: Jerry Daly, Chris Daly
(703) 435-6293
jerry@dalygray.com
SOURCE Premier Capital Associates, LLC
