| SAN DIEGO, California - September
16, 2004 - Michael D. Armstrong, President of Neptune Hospitality Advisors,
Inc., is pleased to announce his firm arranged first mortgage financing
for the purchase of the two-year old 120-room Hilton Garden Inn in Rancho
Mirage, California located in the heart of the Coachella Valley.
Neptune arranged the $10 million three-year floating rate loan through
a national investment bank.
“Hotel debt capital continues to be plentiful in the current environment.
The strong sponsorship and high quality asset |
Hilton Garden Inn Palm Springs/Rancho Mirage
71-700 Highway 111
Rancho Mirage, CA 92270 |
accommodated a competitive process for the financing opportunity,
allowing us to effectively negotiate a relatively high-leveraged loan at
a very low overall effective cost of borrowing for our client,” commented
Stan Kozlowski, Vice President of Neptune.
The hotel was acquired by American Property Management Corporation.
Based in San Diego, APMC was recently ranked as the 10th largest independent
hotel management company by Hotel and Motel Management magazine in March
2004 and the 16th largest hotel owner by Hotel Business magazine in September
2004.
“This transaction is particularly noteworthy for borrowers as our implied
interest rate on the implied mezzanine or junior tranche of the loan, from
seventy to eighty percent of the overall capital structure, was at a low
level that we have not yet seen from our other lending sources. On
the surface, this would imply that the mezzanine market continues to be
even more competitively priced as new entrants buoy the supply of capital
to the sector and existing, traditionally senior lenders push loan-to-cost
percentages past seventy percent, in turn driving overall mezzanine and
implied mezzanine spreads down,” added Gavin Davis, Director of Corporate
Finance for Neptune.
 Neptune
Hospitality Advisors, founded in 2001, is a national real estate firm exclusively
dedicated to the hotel industry with offices in San Diego, Dallas, Boston,
and Honolulu. Neptune specializes in hotel brokerage, debt and equity
financing, and development advisory services.
For more information, contact Michael Armstrong at (858) 964-5678 or
email mike@neptuneha.com or view
the company website at www.neptuneha.com. |