Terrace Capital – Non-Recourse Senior Debt Financing- $10.25MM– Hilton Garden Inn – Southfield

NEW YORK - June 14, 2013 - PRLog -- The Hilton Garden Inn (http://hiltongardeninn3.hilton.com/en/hotels/michigan/hilton-garden-inn-detroit-southfield-mi-DETSHGI/index.html)- Southfield, one of the top rated hotels in the region, is situated on a 2.6 acre site located at 26000 American Dr. Southfield, MI with amenities that include an indoor heated pool, fitness facility, business center, meeting rooms, restaurant and a club lounge.  The property was constructed by A&M Hospitality and opened for guests in 2012.

The proceeds of this $10.25MM, 69% loan-to-value CMBS loan (http://www.terracecapital.com/) were used by the borrower, A&M Hospitality, for the refinance of recourse, local bank construction debt.  The new, non-recourse (http://www.terracecapital.com/) senior debt has a 10-year fixed term and a 25 year amortization schedule and contained substantial cash out.  A&M Hospitality’s principal, Akram Namou, owns and operates multiple other flagged hotel properties in Michigan and Ohio.  The non-recourse (http://www.terracecapital.com/), permanent financing will allow the sponsor to cut his contingent liabilities and continue to draw on his lines of credit for new hotel development loans (http://www.terracecapital.com/).

Commenting on the closing, a senior underwriter stated, while hospitality financing can be a challenge in the current environment, particularly in the state of Michigan, Terrace was able to structure a loan for this well-performing property at a competitive rate.  Terrace Capital’s success in this arena makes us a valued resource in the hotel industry, and is looking forward to financing approximately 10 other well performing hotel properties, owned and managed by A&M Hospitality, including a request for new construction.

About Terrace Capital

Terrace Capital (http://www.terracecapital.com/) focuses on non-recourse, permanent loans and preferred equity of $5MM and greater on income-producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.

The company recently re-started its small balance bridge lending (http://www.terracecapital.com/) program, which focuses on non-bank lending opportunities in the $500M to $5MM range on residential and commercial properties in all 50 states.

For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.