The real estate investment banking duo placed the complicated financing structure with a NY based real estate hedge fund after the project had been stalled for the last 60 months as it sought completion financing
ROCHESTER, NY, April 30, 2019 /24-7PressRelease/ — Miami based GenX Capital Partners along with CapStack Finance out of Boston, MA closed recently on a $37 million construction loan for the $53 million Hilton Tapestry Collection Hotel and condo development located on the Finger Lakes in Canadaguia, New York. The formidably complex financial structure took more than 6 months to complete, but once finished allowed the sponsorship to get the maximum amount of funds needed to reboot the stalled project and get it to the finish line.
“Sponsorship ran into some issues when they were promised financing almost four years back from a firm that ended up not having the balance sheet or capabilities to see the deal through. The sponsors had more than $14 million of their own cash in the deal on the premise that this other firm would deliver and when they didn’t, it created chaos and stalled the project. Fortunately myself and Brian Sheehan of CapStack Finance were able to step in and procure advantageous financing from a solid, reputable firm out of NY who knew the project and sponsorship well, committed the $37 million needed to get the deal closed and back on track,” GenX Capital Partners Managing Director Mark McClure stated.
The developers acquired the land in 2012 with a plan to build a boutique hotel as well as 44 condo units, funding the initial phase of the project with their own equity. The steel structure was built and concrete poured but work on the hotel halted in July 2015 when the previous financing fell through. New lenders were having a hard time wrapping their arms around the project because the hotel component didn’t have a flag at the time, so the developers brought in Hilton’s Tapestry flag. In addition, they brought on Haymarket Hotels to manage the asset, a solid, top notch boutique hotel management firm out of Portsmouth, NH which gave the lenders further comfort in moving forward with the loan.
“No question, the sponsors have surrounded themselves with a top notch team from top to bottom, have solid business plan in place with a location that is second to none. They are going to do very well,” McClure ended.
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