Continental Partners Secures $54M Financing for Ritz-Carlton
- Apr 03, 2017
Rancho Mirage, Calif.—Continental Partners secured $54 million in fixed-rate, non-recourse, interest-only refinancing for the Ritz-Carlton Rancho Mirage, located at 68900 Frank Sinatra Drive in Rancho Mirage, Calif. The financing was arranged by Continental Partners President Mitch Paskover.
The 244-key luxury resort offers 16,000 square feet of indoor meeting and event space, 25,000 square feet of outdoor venues, a business center, two on-site restaurants and a pool bar, a spa, fitness center and access to local activities such as golf courses and mountain and hiking trails.
The Ritz-Carlton resort represents one component of a mixed-use project that is being developed in two phases. The first phases included the renovation and conversion of a hotel into a luxury resort and the addition of 16 for-sale residences.
The sponsor requested an interest only, fixed-rate, non-recourse loan to replace the maturing construction loan to buy out their existing partner in the deal.
“By demonstrating the strength of the asset, the market and the sponsor’s business plan, we were able to source a lender that would lower the debt yield below 9.5 percent, providing a loan amount that met the borrower’s objectives,” said Paskover, in prepared remarks. “We also successfully identified a lender that would release the existing condos and Phase II from the new loan.”
Images courtesy of Ritz-Carlton Rancho Mirage