Multi Lender Financing Structure Provides Construction Financing as well as Funding for Furniture Fixtures & Equipment
The Greenwich Group International has announced that it has secured a total of $22.06 million in construction financing for the development of a new 144 room Courtyard by Marriott Hotel. This project is located at the entrance to a major business park, Melford, which is a 466 acre mixed use business community located at Route 50 and Route 301 in Bowie, Maryland.
Greenwich was the exclusive advisor on behalf of the developer, Hospitality Development Company of Columbia, Maryland. Greenwich was able to structure a $12.4 million first trust construction loan with subordinate financing consisting of $5 million from the Small Business Administration and an additional $2.6 million from several State and County economic development funds. The remaining $2 million was a side loan provided by the first trust lender. Although this financing structure was complicated and took longer to coordinate and settle, it provided the necessary funds for the client to be able to build the project.
Melford has over 1 million square feet of existing space and can accommodate about another 1.5 million square feet of office, flex, and multifamily projects. Current tenants include the US Census Bureau Computing Facility, the Institute for Defense Analysis, and the Masonry Institute Training Facility. The park and the surrounding market will benefit greatly from having the subject project constructed at the park’s entrance. The hotel will be a generation 4 product, the latest design iteration for the very successful Courtyard brand. This will be the first generation 4 Courtyard to be built in the Capitol Area.
The Greenwich team representing the client was led by Don Atchison. Atchison commented “the first trust lender’s appraisal came in low, which surprised all parties involved. This necessitated a creative structure to keep the client from having to fund the shortfall from equity. We were able to minimize the additional equity by tapping into job creation funds available from the public sector. This added a new level of coordination problems, but all the lenders involved believed in the borrower and his project and worked supportively as well as tirelessly to close the financing”.
ABOUT THE GREENWICH GROUP INTERNATIONAL:
The Greenwich Group International is a leading real estate capital advisory firm with offices in Washington, DC, New York, San Francisco and Southern California. Its main focus centers around all aspects of real estate investment capital. The firm offers four main business lines: Capital Markets (Debt & Equity Placement), Investment Banking and Structured Finance, Investment Sales, and Development Services.
For more information, please contact:
Alla Torres
Marketing and Public Relations
703-525-8300 ext. 7
ABOUT HOSPITALITY DEVELOPMENT COMPANY:
Hospitality Development Company is a private real estate development company specializing in the construction and management of hospitality projects in the Maryland area. Through skills and experience gained over decades of commercial real estate development and advisory work, the company has developed two successful projects with over 220 rooms, has the Bowie Courtyard ready to begin, and owns land for several other projects.
