|SAN DIEGO, California - February 24, 2005 - Michael D. Armstrong, President
of Neptune Hospitality Advisors, Inc., is pleased to announce his firm
arranged first mortgage financing for the recapitalization of an 11-property,
926-room limited service hotel portfolio on behalf of Creative Hotel Associates
(CHA). Neptune arranged the $36.7 million five-year floating rate
loan through a national commercial finance company.
Neptune structured the financing to meet a number of key financing criteria including: allowing the borrower to “cash-out” approximately 20% of the loan proceeds off-of-the-table; a prepayment lock-out window of less than one year with no associated prepayment penalty; a below market interest rate; and substantial elimination of existing recourse on the portfolio.
Creative Hotel Associates was founded by three prominent hospitality industry executives, Bob Hazard, former co-chairman of Choice Hotels and former CEO of Best Western; Jerry Petitt, former co-chairman of Choice Hotels; and Rick Kaden, former CFO of Manor Care and senior vice president of franchise operations for Choice Hotels. Paladin Realty Partners is the investment partner of CHA, which currently owns and operates 14 hotels in five states under various Marriott, Hilton, Choice and Best Western brands. CHA also manages hotels for other owners.
“The thing that so impressed us about Neptune was their thoroughness and their responsiveness,” commented Kaden. “We view the people we do business with as partners, and we were extremely pleased with the partnership with Michael, Stan and Gavin.”
“We continue to selectively grow our client base in a manner that allows us to provide the highest quality of service to our clients. We are focused on building strong, lasting relationships,” commented Stan Kozlowski, Vice President of Neptune. “Having earned the praise of such industry stalwarts as CHA was rewarding and further establishes Neptune as one of the premier hotel capital advisors in the country.”
“As an advisor, we differentiate ourselves from traditional hotel or mortgage brokers by providing our clients with a high level of analytics and advice. Our role does not stop once a borrower is connected with a lender. We’re here to source and structure the best capital solutions for our clients’ specific deal needs,” added Gavin Davis, Director of Neptune.
Neptune Hospitality Advisors is a national real estate firm dedicated to the hotel industry that specializes in capital advisory and investment sales. As a boutique, client-focused firm, Neptune provides a principal-to-principal focus and sophisticated approach to providing investment sales and financing services to the hospitality industry. Neptune has completed over $175 million in hospitality transactions in the past twelve months.
The Aventine Building
8910 University Center Lane
San Diego, CA 92122
P. (858) 964-5678
F. (858) 964-5679
|Also See:||Neptune Hospitality Advisors Arranges Financing for Purchase of Austin, Texas Hotel / November 2004|
|Neptune Hospitality Advisors Arranges Sale of Albuquerque Hotel / October 2004|
|Neptune Hospitality Advisors Arranges Financing for Purchase of Tampa-area Hotel / October 2004|
|Neptune Hospitality Advisors Arranges Refinancing of Unizan Plaza Office Building in Downtown Canton, Ohio / September 2004|
|Neptune Hospitality Advisors Arranges Financing for Purchase of Palm Springs Area Hotel / September 2004|
|Neptune Hospitality Advisors Arranges Acquisition Financing of Nashville Hotel / June 2004|
|Neptune Hospitality Advisors Represents Purchaser and Arranges Acquisition and Renovation Financing of Albuquerque Hotel / March 2004|