LOAN MODIFICATION + EXTENSION

Full-Service Hotel, Denver

A major hotel Owner with properties nationwide faced challenges securing new financing before a pending loan maturity date. Still recovering from the pandemic, their 297-key full-service Denver hotel needed more time and money to sustain progress. THG stepped in early to proactively engage the Special Servicer, shut down a potential maturity default, and successfully negotiated a loan modification exceeding $48 million. Retaining this legacy property was deeply personal to the Borrower, and the modification agreement offered an optimal solution given the hotel’s current state. The Borrower agreed to a slightly higher interest rate and an equity contribution, which helped reduce the unpaid principal balance (UPB) and strengthen the FF&E reserve for future improvements. This best possible outcome supported the Borrower’s commitment to the property while positioning it for future success.

LOAN EXTENSION + INTEREST RATE REDUCTION

Two Pre-Construction Land Loans, San Francisco

A prominent California Developer had two separate (non-cross collateralized) bridge loans totaling roughly $40MM on pre-construction land that had reached maturity. Adverse economic conditions, coupled with exorbitant building cost increases, prevented the owners from moving forward with the construction of two apartment towers. Additionally, the debt carried an expensive floating interest rate coupon, and the property generated very little cash flow but for some minor parking income. The debt fund Lender was seeking a complete payoff of both loans. Absent a full payoff, the Lender wanted a significant equity contribution as a prerequisite to extending the loans. The Developer and THG negotiated multi-year extensions, reduced interest rates, and a de minimis new equity contribution from the sponsorship.

LOAN EXTENSION + CASH INFUSION

CMBS Floating Rate Office Loan,

Midwest

The Borrower of a Midwest Office complex had previously extended their $200MM+ CMBS Office loan and needed another extension. The fallout from the pandemic was still bearing down, among other factors, and more time would provide the necessary runway to backfill significant vacancies and stabilize the asset. THG successfully negotiated a second 12-month extension, plus secured a modest capital infusion at closing to be utilized for operating shortfalls or Tenant Improvements and Leasing Commissions. 

FRANCHISE RENEWAL TRIGGER CURE + RETURN TO MASTER SERVICING

Small Flag Hotel, Upstate New York

Propelled by a default linked to a franchise renewal trigger, the owner of a 106-key Hampton Inn sought out a CMBS expert to review all loan documentation and guide them through the stringent process of exiting Special Servicing. THG was retained to negotiate the trigger cure, which included a newly executed 10-year franchise agreement with the flag, a cash management agreement, and the payment of associated fees. As a result, the loan was successfully transferred back to Master Servicing, where it remains under cash management until the debt service coverage ratio meets the specific requirements outlined in the loan agreement.