Ramsfield originated a Senior Mortgage for the acquisition of the Radisson Denver Southeast by Malaga LLC. The loan exceeded the hotel’s purchase price and represented approximately 87% of the borrower’s total investment basis. Because of Ramsfield’s quick turnaround time in underwriting the deal, in addition to the loan’s high LTC percentage, a profit participation in the property’s eventual net sales proceeds was included with the loan.
Because of the loan’s structure, the borrower was able to purchase this property out of bankruptcy, perform a strategic renovation, and more efficiently operate the asset over their holding period. The hotel was sold during the first quarter of 2008 at an amount substantially above the Borrower’s initial purchase price. Ramsfield’s ability to quickly underwrite this high loan-to-cost loan led to investment that substantially benefited both the borrower and lender.
After Ramsfield’s loan was paid back in 2008, the hotel was converted to a Red Lion.
Denver, CO
Radisson Denver
$12,850,000 First Mortgage Loan
Ramsfield originated a Senior Mortgage for the acquisition of the Radisson Denver Southeast by Malaga LLC. The loan exceeded the hotel’s purchase price and represented approximately 87% of the borrower’s total investment basis. Because of Ramsfield’s quick turnaround time in underwriting the deal, in addition to the loan’s high LTC percentage, a profit participation in the property’s eventual net sales proceeds was included with the loan.
Because of the loan’s structure, the borrower was able to purchase this property out of bankruptcy, perform a strategic renovation, and more efficiently operate the asset over their holding period. The hotel was sold during the first quarter of 2008 at an amount substantially above the Borrower’s initial purchase price. Ramsfield’s ability to quickly underwrite this high loan-to-cost loan led to investment that substantially benefited both the borrower and lender.
After Ramsfield’s loan was paid back in 2008, the hotel was converted to a Red Lion.
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