Spirides Arranges $8M Loan for Hilton Hotel
- Apr 11, 2017
Spirides Hospitality Finance Co. closed on an $8 million senior loan facility from a southeast U.S. headquartered bank to finance the development of a new Hilton Tru Hotel in Florence, S.C. President Harry Spirides led the debt placement team representing the borrower in this transaction.
The first 18 months during construction will have interest-only mortgage payments priced at the prime interest rate plus .50 percent (currently 4.50 percent) per annum, adjusted quarterly. Upon completion, loan payments will convert to a 25-year fully amortizing principal and interest monthly loan payment schedule. The interest rate of the permanent loan will be fixed for five years, then adjusted every five years. The interest rate will be priced using the 5 year SWAP rate plus 3.55 percent (currently 5.55 percent) per annum. The loan amount was sized using a 75 percent loan to cost ratio, and there is no prepayment penalty after the first five years of the loan.
Located at 2140 West Lucas St., the soon to be built five-story Tru by Hilton hotel is located less than a mile from Interstate 95 and less than 4 miles from Florence city center. The development will be minutes from Darlington Raceway & Museum, Florence Regional Airport and Florence Civic Center. Other nearby attractions include the War Between the States Museum, Magnolia Mall, Pee Dee Farmers Market, Florence Art Gallery, Veterans Park, Francis Marion University Performing Arts Center, Florence Symphony Orchestra, Florence Little Theatre. The project includes 98 guest rooms on 2 acres of land.
“It’s no secret that hotel construction lending is not as prolific as it was a couple years ago, even though the demand has certainly not diminished. The sponsor of this project is a respected multi-unit and multi-brand owner and operator of successful hotels throughout the Carolinas, ” said Spirides, in a prepared statement.
Video courtesy of Tru by Hilton