Texas Comfort Suites Property Refinances And Expands
DALLAS, TX | The owners of the Comfort Suites in Stafford, TX recently closed on the refinance of their 68-room hotel. In addition to paying off the existing 10-year conduit/CMBS loan one year early, the borrowers both achieved their target leverage and extracted equity to add 15 additional suites to the property. The 10-year fixed-rate refinancing program carried par pricing, allows for free pre-payment after 5 years, and provided an early...
The Stafford Comfort Suites was built in 1996 by the current owner/operators. The property sits 10 miles outside downtown Houston and has consistently exceeded 70% occupancy since opening. The owners hold the Choice Gold Hospitality Award, rating in the top 20% of the franchisor’s 5,300 hotels.
Cameron J. Larkin, Senior Vice-President of Business Development for First American Realty, arranged the financing on behalf of the sponsors. This is the 511th hotel financed by First American Realty.
“We were favorably impressed with the professionalism, knowledge and efficiency of the folks at First American Realty,” said borrower Naren Patel. “More importantly, they are fair and forthright in their dealings. Their ability to deal with the multiple parties and manage them all to a planned closing date deserves special mention. I believe for our next project financing Cameron Larkin and First American Realty will be our financing intermediary of choice.”
“Beyond mortgage payment savings, the borrowers save further by financing the 15-room build-out with fixed-rate money,” said Larkin. “Their early refinancing and expansion were well calculated to take advantage of both historically low 10-year Treasury rates and the expanding Houston-area lodging market.”