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| THE REAL DEAL: Crystal Motel Complex : |
| WHERE: |
Red Bluff, CA |
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| WHAT: |
42-room, extended-stay motel, 44-unit multifamily building, and 19,608
SF 14-unit retail center |
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| PROPERTY TYPE: |
Class B (Hospitality/Multi-Family/Retail) |
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| LENDER: |
Meecorp Capital Markets, a privately-owned commercial real estate
lender and investment banker |
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| FINANCING: |
$2,750,000 bridge loan |
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| TERMS: |
3-years with interest in the low teens and no prepayment penalty |
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| LTV/LTC: |
LTV/LTC: 60% of as-is value |
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| BUILD-OUT/LEASE-UP: |
Minor renovations |
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| Kevin and Ulanda H., co-owners of a real estate development company, approached MEECORP to finance the purchase of a motel complex in exclusive Red Bluff, California. The husband and wife team had considerable experience with real estate investments and project management. Kevin is an engineer, and his wife Ulanda holds a law degree from Harvard. The 66,354 SF complex they sought to purchase is comprised of 7 buildings (a 42-room extended stay motel, a 44-unit multifamily building, and a 14-unit retail center) on approximately 6 acres of land. All properties were cash-flowing well, with an occupancy of 65%, 100%, and 100% respectively.
Based on these findings and its own underwriting criteria, MEECORP approved a $2,750,000 bridge loan enhanced by real estate assets owned by the borrower – including a second mortgage on two income-producing single family residences and a pledge of other commercial properties in Northern California. “We are delighted that MEECORP took on our project (which I understand is relatively small compared to their other loans),” explains Ulanda. “We looked at over 70 lenders around the country and MEECORP provided the best solution for us. They stepped up to the plate. We appreciate their professionalism and their personal touch.”
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