Cash-Out Refinance Loan for Boutique Hotel in Glendale, California

Avatar Financial Group, a direct private money lending firm, funded a $6,500,000 1st lien position bridge loan to refinance an independent boutique hotel in downtown Glendale, California. The Borrower needed to cash out equity out of the property in order to purchase another hotel property. Avatar was able to refinance the property and provide the Borrower with the cash out needed in time to capitalize on the new opportunity. The hotel was originally established in 1924. The Borrower has owned and operated the subject property since 1999, and it has been continually upgraded and has a 4-star rating from many travel websites. In addition to the 40 hotel rooms, the property has 7,500 square feet of first-floor retail space. Our interest rate was 7.5% for a 12-month term and loan-to-value of 61%. The deal was brought to us by a mortgage broker to whom we paid a commission of $65,000. This CRE bridge loan was funded in June 2019.