Stonehill Strategic Capital Primed to Provide $500 Million in Hotel Financing in 2015
Stonehill Strategic Capital, LLC ("SSC"), an affiliate of Peachtree Hotel Group II, LLC ("Peachtree Hotel Group"), today announced that it is poised to transact $500 million in fixed rate permanent loans, floating rate bridge loans, mezzanine debt, preferred equity and discounted note purchases during 2015. SSC successfully closed $25 million in loans in December 2014 and an additional $65 million is under signed application scheduled to close...
"We exceeded our most optimistic forecasts during 2014, our first full year since inception, and set the stage for a very fruitful second year and beyond," said Mat Crosswy, president of SSC. "Adding a permanent loan product is an important milestone in our company's growth that directly complements the existing debt solutions we can provide our clients. This allows SSC to take a client through the entire life of an asset. By all measures, 2015 looks incredibly bright for both our company and the industry at large."
Stonehill completed 19 transactions in 2014 totaling more than $150 million. Stonehill deployed capital in a variety of transactions, including bridge loans, permanent loans, mezzanine loans and preferred equity investments.
Stonehill Predicts Increased Activity in Secondary and Tertiary Markets
Crosswy noted that with the supply pipeline remaining close to one percent of total room demand, increasing average daily rate (ADR), and transaction activity shifting to secondary and tertiary markets, the demand for hotel financing will remain healthy for the coming year. "With supply in check and occupancy projected to reach record highs, confident owners likely will be eager to complete renovation projects and refinancing. All signs point to a strong 2015 and 2016 for the industry," Crosswy added.
Crosswy also pointed out that in terms of transaction volume, 2014 will be hard to beat. "Last year was huge in terms of portfolio and trophy property transactions," Crosswy stated. "However, in our niche of transactions between $5 and $20 million that tend to be focused outside the top 40 MSAs, we think there will be an increase in activity year-over-year. We're going to start to see the cusp of the pre-recession CMBS loan originations from 2005, and as those deals roll, owners will have to either refinance or sell depending on their desired long-term strategy. We anticipate that will be a prevalent scenario this year."
About Stonehill
Stonehill primarily focuses on funding permanent loans, bridge loans, mezzanine loans, and preferred equity investments backed by limited- and select-service and compact full-service hotel assets. Since its founding in 2013, Stonehill originated more than $3.5 billion in loans for hospitality projects seeking capital to complete acquisitions, recapitalizations, refinancing and renovations. For additional information, please visit www.stonehillsc.com.
About Stonehill PACE
Stonehill PACE, a division of Stonehill, is a direct lender for Property Assessed Clean Energy (PACE) financing. The group specializes in providing PACE funding for all commercial asset classes. Its depth of experience in sourcing, underwriting and closing real estate transactions is unparalleled in the PACE industry. The team at Stonehill PACE has earned a reputation for providing a professionally managed, efficient execution. For additional information, please visit www.stonehillpace.com.
Media Contact
Chris Daly
[email protected] (703) 435-6293