Molinaro Koger Arranges $27.5 Million Refinancing of Houston's Hotel Derek
MCLEAN, VA, July 26, 2005. Molinaro Koger, acting as exclusive advisor to Westheimer Hotel LP, a joint venture of Angelo Gordon & Co. and Amerimar Enterprises Inc., has arranged a $27.5 million non-recourse loan for the refinancing of The Hotel Derek, an upscale hotel located in Houston, Texas. Westheimer Hotel LP used the loan to refinance existing funding.
"Westheimer Hotel LP's timing to seek new funding for this asset was superb," said Edward Blum, Molinaro Koger's Managing Director, Capital Markets, who arranged the financing. "The hotel financing market is terrific, and now is a great time to refinance or purchase hotel assets. Although interest rates have risen somewhat, spreads have come down, and conduits are competing to obtain underwriting. There is new interest in the mezzanine market.
"All of this is good news for our clients. Because our finger is on the pulse, and we frankly have access to every hotel lender out there, we are able to put together optimal lender/project matches."
There is an art to such matches according to Mr. Blum. An array of factors impact what can result in an optimal rate and structure. These factors include the asset type, flexibility, conduit and balance sheet lender preferences, and whether the asset is a turn-around or cash flow operation.
Located in Houston' s Uptown Galleria area, the 314-room Hotel Derek is a member of a Preferred Hotel & Resorts Worldwide. An extensive renovation completed in 2001, provided the hotel with a crisp, tailored look, custom-designed furnishings, original artwork and contemporary pieces. Hotel Derek features bistro moderneTM, the classic French restaurant of star chef Philippe Schmidt, as well as 10,000 square feet of meeting space, 24-hour fitness center, spa treatment, and oversized guest rooms with 100% goose down duvets, porcelain sinks, rain showers and cordless phones.
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