Dealmaker: George Smith Partners Arranges $40M for Hotel Property
George Smith Partners, Los Angeles, arranged $40 million in cash-out bridge financing for a 180-key Radisson RED hotel in Portland, Ore.
The bridge facility allowed the sponsor to pay off its construction loan, returned capital to investors and provided additional runway for the hotel to ramp up.
The hotel occupies the first nine floors of a 19-story mixed-use high-rise tower that delivered adjacent to Portland State University within walking distance of downtown Portland in late 2018. The remaining 10 floors are Class A office space. The property is unusual because it is a select-service hotel within a Class A high-rise.
The 75 percent loan-to-value non-recourse execution was fixed at a 7.75 percent interest rate. The sponsor concurrently sold the office portion to a core office buyer in a separate sale.
GSP advisors working on the deal included Principal/Managing Director Malcolm Davies, Senior Vice President Zachary Streit, Vice Presidents Annah Blanton, Alexander Rossinsky and Rachael Lewis, Assistant Vice Presidents Aiden Moran and Maxwell Shedlosky and Analyst Brandon Asherian.