This was an SBA 7a loan used for the purchase of a Ramada property. The challenge this loan was the borrower wanted extremely low interest rate that was nearly 0.50% below typical market interest rates. We were able to leverage our own high volume relationship with the bank to obtain the borrower these exceptional interest rate terms requested. Also, another challenge on this loan was that the franchisor required an extensive PIP requirement to maintain the flag of the property. We were able to assist the buyer by using our extensive franchise contacts to help coordinate buyer negotiations with high level managers to help aide them in getting a reduction in the amount of PIP being required by the franchisor and also to get great reduction in franchise royalty fees over the first few years. This greatly helped the borrower preserve some of their cash that was going to be used towards paying for PIP and towards royalty fees in the first few years. The client was then able to instead spend their cash on expenses that immediately help to increase the overall revenues and profit such as new marketing and some minor curb appeal improvements such as landscaping.

Client Comments:

“It was an absolute pleasure working with Shawn on one of my recent hotel transactions where I was the transacting broker. Shawn not only provided great services including getting good terms for the borrower but also liaised with Franchisor, seller and the title company that resulted in a smooth closing. I highly appreciated his timely response and him going out of his scope to make the deal happen.”

Chris Gomes – Marcus & Millichap, Associate Director National Hospitality Group