Property Address

McKinney, Texas

Requested Loan Amount

$$16,000,000

Loan Term

48

Lien Position

1st

Collateral Type

Commercial Property Ground Lease

Exit Strategy

Refinance

Collateral and Loan Details

Commercial Property Type

Hospitality

Hospitality Property Types

Full Service Hotel

Number of Units

250

Current Occupancy

Vacant

Loan Type

Ground-Up Construction

Land Value

18000000

Estimated Costs

15000000

Description

The land in Dallas was bought for $18M in 2014 by Dallas CF Hospitality Associates, LLC. This was a JV with the current owner, but they were not the Sponsor. This JV did not workout, so the land was transferred to VC McKinney Dallas Investment, LLC. This was a new entity of owner without the JV partner along with the $5.2M in Debt, in 2017. VC McKinney Dallas Investment, LLC invested over $15M, not including the $5.2M Debt, to get the development “Shovel Ready”, while 3207 McKinney Hotel, LLC has $7M invested. Now, VC McKinney Dallas Investment, LLC must sell the land for $15.750M to 3207 McKinney Hotel, LLC to raise capital due to COVID-19. The Lender, Maxim Capital, will not let the Debt transfer, so the $5.2M lien is part of the Purchase Price. 3207 McKinney had a $3M investor that left due to COVID-19, so more working capital is needed in order to close the acquisition. We are looking for a Bridge Lender at $16M to close on the land, be the 1st position Senior Lender, and then be removed in 6 months by the Construction Loan. We would use the excess funds from the Bridge Loan as working capital to close the Construction Loan along with legal, GC, etc.

Budget

Yes

Completed

20

Licensed

No

Will additional properties be collateralized?

No

Borrower Entity

LLC

Borrower Credit Rating

Prefer Not to Answer

First Name

Michael

Last Name

Chapman

Phone Number

706-239-5768

Role

Consultant

Location

McKinney Texas USA

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