National Advisory Firm Arranges Strong Loan for Newly Constructed Hotel
Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $15.26 million of acquisition financing on behalf of Midas Hospitality for the purchase of the newly constructed Staybridge Suites Houston – Medical Center, a 120-key extended stay hotel located at 9000 South Main Street in Houston, Texas. The Mission Capital team of Philip Justiss, Alex Draganiuk, and Lexington Henn structured the recourse loan from IBERIABANK.
The flagged hospitality asset opened in January 2017, and is ideally situated in the Texas Medical Center submarket, one of Houston’s strongest submarkets. Its location near the NRG Park convention center, NRG Stadium, Rice University, and the Texas Medical Center – which contains the world’s largest cancer and children’s hospitals – assures the area of a consistent flow of commercial, sports, academic, and medical visitors.
“As a rare new hotel in this area of Houston, the Staybridge Suites is a very attractive asset, but the property’s lack of operating history was a challenge for some lenders,” said Justiss. “Additionally, with the struggling oil market, there are some capital providers who are generally limiting their exposure to Houston. Despite these challenges, we were able to secure interest from a wide range of lenders and provide the sponsor with both recourse and non-recourse options from banks, hedge funds, and debt funds. IBERIABANK was the right choice for a number of reasons, but the determining factors were that they understood the sponsor’s financial needs, their business plan, and the asset, which is in their backyard.”
“The quality of this hotel is unquestionable, and we have complete confidence that its best-in-class amenities and prime location will attract a steady stream of visitors,” said Midas’ Co-Founder, J.T. Norville. “We were also able to negotiate and structure a mutually beneficial long-term agreement with the IHG brand, one of our three preferred brands across our portfolio.”
“Midas is exactly the type of well-capitalized, talented sponsor that IBERIABANK looks to cultivate and serve as we grow our high-quality loan portfolio,” said Robert Martin, Senior Vice President for IBERIABANK. “Working with Mission was a pleasure. Their streamlined due diligence and closing process was key in facilitating the quick acquisition financing that this purchase required.”
The Staybridge Suites-franchised property caters to long-term travelers; internationally, nearly 60 percent of Staybridge Suites guests stay for visits of five or more nights. The hotel features a range of conveniences including a fitness center, barbecue grills, and an outdoor pool. In-room amenities include 42-inch cable TVs, as well as fully-equipped kitchens with cooktop stoves, full-sized refrigerators, and dishwashers.
Added Draganiuk: “The sponsor is a very sophisticated hotel operator, with the unique ability to judiciously scale corporate growth and ramp occupancy at their properties. They had been looking to invest in the Houston market for several years, and this well-located asset will be a very strong addition to their growing portfolio. We met with the sponsors, Robert and the whole IBERIA team in Houston, and they were great. They are a great fit for Midas, and we hope to close more deals with them in the future, with Midas, as well as our other clients.”
Midas Hospitality is a hospitality-focused commercial real estate investment and management firm with a portfolio currently comprising 30 hotels and more than 2,500 keys. With properties in the Midwest and Southeast, St. Louis-based Midas Hospitality has quickly become one of the premier hospitality management groups in the region.
IBERIABANK started in 1887, in New Iberia, Louisiana. For 130 years, it has focused on growth and a commitment to the community. Today, the bank continues that dedication by meeting the needs of its clients through comprehensive financial services which include Retail, Commercial, Business Banking, Private Banking, and Mortgage. Its commitment to its clients affords the bank the opportunity to provide services through an extensive network of bank locations throughout the Southeast. Through its market-centric approach, the bank is able to create, foster, and preserve client and community relationships at a local level.
Mission Capital Advisors is extremely active in arranging financing for hotel, office, industrial, multifamily, retail, and self-storage properties across the country. In recent months, the firm has arranged loans for a Midas-owned hotel property in South Carolina, as well as other hospitality assets in California, Florida, Illinois, New York, Texas, and Washington.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California, and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across debt, mezzanine, and JV equity placement; commercial and residential loan sales; and loan portfolio due diligence and valuation. Mission Capital Advisors is extremely active in arranging financing for office, industrial, multifamily, retail and self-storage properties across the country. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of financing and loan sale transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.missioncap.com.