OFFERING SUMMARY
Newmark has been exclusively engaged to offer investors the opportunity to acquire an $86 million performing loan portfolio consisting of sixteen (16) loans (the “Loans” or “Portfolio”) secured by limited-service hotel properties located throughout the United States (the “Collateral” or “Properties”). The Loans are all bank-originated with an average Loan balance of $5.4 Million, and 96% of the Portfolio’s UPB—or 14 of the Loans—are senior / first lien mortgages. The remaining 4% of the UPB is comprised of junior Loans related to other assets in the Portfolio; one second mortgage and one B Note. The Portfolio features a weighted average remaining term of just under three years and a weighted average coupon (WAC) of 6.33%, of which seven (7) Loans are fixed rate and nine (9) are floating rate. The Portfolio boasts attractive performance metrics that include a weighted- average DSCR in excess of 1.50X, weighted-average debt yield north of 13.00%, and conservative LTVs across the Portfolio. Additionally, the Loans are all performing under their in-place Loan terms.
In total Collateral is comprised of 14 hotels that average 109 keys, with flags that include Holiday Inn Express, Hampton Inn, Candlewood Suites, Delta Hotels and Fairfield Inn & Suites by Marriott, among others. Weighted average year-built is 1994 (with renovations since) and hotel performance metrics across the Portfolio are 59% occupancy, $76 RevPAR, and $129 ADR. Properties are located in Indiana, Ohio, South Dakota, Nebraska, Kentucky, Nevada, Virginia, and Georgia.
Offers will be considered for the Portfolio in its entirety, for individual Loans, or for any combination of Loans. The Sale presents investors the opportunity to acquire a sizable hospitality Loan Portfolio which boasts strong loan metrics, desirable Collateral, and favorable remaining term.
INVESTMENT HIGHLIGHTS
SIZABLE UPB
$86 MM Allows for Sizable Investment
$5.4 MM Average Loan UPB
LIMITED-SERVICE HOTEL COLLATERAL
16 Unique Properties
1526+ Keys in Portfolio / 109 Average Hotel Size
STRONG PAYMENT HISTORY
All Loans Demonstrate Performing Pay Histories
ATTRACTIVE LOAN PERFORMANCE METRICS
1.50X DSCR
13.3% DY
Conservative LTVs
BANK-ORIGINATED PAPER
Originated via Regional Banks
Well-Documented
DIVERSIFIED COLLATERAL / LOCATIONS
Eight (8) Different States
LOAN TYPE
Portfolio; 96% First-Lien
LOAN STATUS
Performing
CURRENT UPB
~$86MM / AVG BAL: $5.4MM
WTD AVG ORIGINATION DATE
August 2021
WTD AVG MATURITY (WAM)
February 2027 (~2.6 Yrs Rem. Term)
WTD AVG COUPON (WAC)
6.33% (Fixed & Floating)
COLLATERAL TYPE
Limited Service Hotel
LOCATION
Nationwide
TRANSACTION TEAM
U.S. & INTERNATIONAL CAPITAL MARKETS
