NEW YORK — PMZ Realty Capital LLC, a national boutique real estate investment-banking firm focused on creating cutting-edge capital structures, reported a record-breaking number of deals in 2019. The firm completed financing for 40 hotels, reporting a total dollar volume of over $700 million.
“We had another year of robust growth, having completed more than $700 million in financing for our clients. The macro-economic factors are in place for 2020 to be an even stronger year as interest rates remain at historic 40-year lows, low unemployment, and a healthy GDP growth number,” said Peter Berk, president, PMZ — Hotel Finance Group. “With construction lenders remaining disciplined in terms of allocation of funds for new projects, and appropriate loan-to-cost ratios preventing overleveraging in the hospitality sector, PMZ remains extremely optimistic about the industry fundamentals in 2020.”
Last year’s deals included almost every hospitality brand and some independents. Some recent transactions include:
- Completed an $84 million fixed-rate loan for the Embassy Suites Centennial Park in Atlanta.
- Completed a $35 million refinancing loan for Middletown Management on a three-property portfolio including SpringHill Suites by Marriott, Beavercreek, Ohio; Holiday Inn Cincinnati North, West Chester, Ohio; and Holiday Inn Express & Suites Dayton, Ohio.
- For the TRYP by Wyndham Miami Bay Harbor, Bay Harbor Islands, Fla., PMZ completed a $25 million bridge loan for a three-year term with floating rate based on 30-day LIBOR and sourced via a debt fund.
- For the MC Hotel, Autograph Collection, in Montclair, N.J., PMZ completed a $35 million three-year bridge loan with a floating rate based on LIBOR funded by a public mortgage REIT.
- Completed a $40 million portfolio loan for CMC Hotels for three properties in Raleigh, N.C., including SpringHill Suites by Marriott Raleigh Cary, Hyatt House Raleigh, and Fairfield Inn & Suites Raleigh. This allowed CMC to retire existing construction debt and provided additional capital to enable further expansion into the Raleigh market.
“PMZ works with our clients to find the most favorable execution in terms of both proceeds and loan-terms based on our experience with closing hundreds of deals over the past several years and our strong relationships with all the major capital providers who operate in the hospitality industry,” said Michael Sonnabend, managing member, PMZ Realty Capital. “Our clients appreciate the creative structures we put together tailored to their specific situation and needs. We anticipate financing to continue to be available in 2020, but with stricter underwriting criteria. The maturity of the hotel market, along with decreased RevPAR, will continue to force lenders to maintain tight underwriting.”
