Highland Realty Capital Arranges $53 Million Refinance Loan For Bay Area Hotel Portfolio

The asset involved in this transaction is a hotel portfolio located in Palo Alto, Emeryville, and Newark, comprising a total of 691 keys and covering 409,234 square feet. The addresses associated with this transaction include 625 El Camino Real, 1603 Powell Street, and 39270 Cedar Boulevard. The total loan amount reached is $53,000,000 with a refinance loan type; terms include a 5-year fixed rate and are non-recourse.

Summary of transaction details:

• Property Type: Hotel
• Transaction Amount: $53,000,000
• Loan Type: Refinance
• Loan Terms: 5 Year Fixed, Non-Recourse
• Broker: Jeffrey Eliason & Leland Ortega - Highland Realty Capital
• Market: Palo Alto, Emeryville & Newark
• Loan Allocation: $41.35M for the Sheraton Palo Alto, $5.65M for the Sheraton Four Points-San Francisco Bay Bridge, and $6M for the Hilton Homewood Suites-Newark-Fremont
• Total Rooms: 691
• Total Square Footage: 409,234

Highland Realty Capital facilitated the arrangement of three separate loans for a regional owner/operator of Bay Area hospitality assets, with each loan aggressively priced in the mid 5% to low 6% range from balance sheet lenders. The loans are structured with flexible back-end prepay provisions.