The financing is a 13-year, fixed-rate loan with a three-year interest only period at 7.27%, followed by a ten-year permanent loan at 7.52%, amortizing over 25 years. It has a loan-to-value ratio (LTV) of 73%, and a debt-service-coverage ratio (DSCR) of 1:35:1 on 1998 operating results. 

The hotels are owned by two limited partnerships, Lodging Opportunities L.P. and Thayer Hotel Investors II, L.P., that are managed by Thayer Lodging Group. 

Fred Malek, chairman and chief executive of the two owning partnerships said, "This refinancing adds great value to our portfolio and underscores the integrity and capability of Capital America." 

Thayer Lodging Group, founded in 1991 and headquartered in Annapolis, invests with institutional partners and has become one of the largest private owners of hotels in the United States. 

Lee Pillsbury, chairman of Thayer Lodging Group said, "This financing represents a significant step forward for our investors, and reflects Capital America's strong belief in the value of these assets." 

The properties are: 

• Annapolis Marriott Hotel, Annapolis, MD 
• Bethesda Residence Hotel, Bethesda, MD 
• DoubleTree Rockville, Rockville, MD 
• DoubleTree Hotel Somerset, Somerset, NJ 
• DoubleTree Guest Suites, Plymouth Meeting, PA 
• Richmond Embassy Suites, Richmond, VA 
• Maison DuPuy, New Orleans, LA 
• DoubleTree New Orleans Lakeside, Metairie, LA 
• Sheraton Suites Plantation Hotel, Plantation, FL 
• DoubleTree Oceanfront, Ft Lauderdale, FL 
• Sheraton Austin, Austin, TX 
• North Shore DoubleTree Hotel, Skokie, IL 
• Ft. Lauderdale Doubletree Guest Suites Hotel, Ft. Lauderdale, FL 

Michael Brody, Capital America managing director and Jean Baker, lead banker, said that despite its complexities, the loan was a pleasure to work on. "The quality of Thayer's hotels and their management team made funding this project enjoyable," Brody said. 

The San Francisco-based Capital America is a wholly-owned subsidiary of Nomura Holding America, Inc. that provides commercial real estate financing. The company's servicing arm, Capital America Client Services, handles servicing for the duration of the borrowers' loans. Capital America has regional offices in New York, Miami, Los Angeles, Dallas and Chicago.