Cornhusker Square Hotel in Lincoln, Nebraska
|RALEIGH, N.C. & BEVERLY HILLS, Calif. - June 7, 2004 -- Winston
Hotels, Inc. (NYSE:WXH), a real estate investment trust (REIT) and owner
of premium limited-service, upscale extended-stay and full-service hotels,
and Canyon Capital Realty Advisors, a national lending and real estate
investment firm, today announced the placement of a $16.85 million loan
to finance the acquisition and major refurbishment/conversion of the Cornhusker
Square Hotel in Lincoln, Neb.
The transaction includes the 10-story, 290-room hotel, an attached seven-story, 86,000-square-foot office building and a 42,000-square-foot meeting and conference center. The financing includes the cost of an approximate $5 million renovation, which is expected to be completed in the 2004 fourth quarter. The hotel will remain open during the renovation and convert to a full-service Marriott hotel upon completion.
Canyon Capital provided $10.85 million as the first, or A, piece of the financing, Winston provided $6 million as the second, or B piece. The loan is secured by the interest in the real estate complex. The financing is for two years, plus a one-year extension at the borrower's selection. Ronald Muzzi, Cohen Financial, Boca Raton, Fla., brokered the transaction.
"We have had a long-standing relationship with Winston, and look forward to conducting more transactions together," said Jonathan Roth, principal, Canyon Capital Realty Advisors. "Winston's in-depth experience in hotel ownership and operations provided us with additional expertise and insights into the potential for the hotel. We remain highly interested in underwriting quality hotel assets."
Roth noted that Winston and Canyon Capital worked together closely from the beginning of the transaction and were able to make the financing process virtually seamless to the borrower. "This substantially reduced the paperwork, legal costs and time required to process the loan," he said.
"We found this joint-venture approach with Canyon Capital to be a very efficient way to underwrite the financing, especially for the borrower," said Joe Green, president of Winston. "We are looking at several other transactions with Canyon Capital, and look forward to expanding our relationship."
Green noted that Winston continues to target subordinated hotel loan opportunities between 60 percent and 85 percent of a project's value for hotels with 100 to 425 rooms and single-asset loan amounts that range from $1 million to $15 million. Winston makes debt capital available for construction, acquisition, major refurbishments and refinance. The company also seeks to underwrite and acquire the junior mezzanine portion of loans that are originated in the marketplace under Collateralized Mortgage-Backed Securities (CMBS) programs. "Our debt finance pipeline remains very active," he said.
About Canyon Capital Realty Advisors
About Winston Hotels
In addition to historical information, this press release contains forward-looking statements about Winston Hotels.
Canyon Capital Realty Advisors
Winston Hotels, Inc.
|Also See:||Upscale Mid-West Hotel and Office Plaza on Sales Block - Jones Lang LaSalle Hotels Tapped to Market Cornhusker Square — Lincoln, Nebraska’s First-Class, Mixed-Use Development / June 2003|
|Winston Hotels Plans to Expand the Scope of its Hotel Real Estate Lending Business; Has Available $51 million from Latest Equity Offering / October 2003|