March 31, 2017
Los Angeles-based Continental Partners secured $54 million to refinance the 244-room Ritz-Carlton Rancho Mirage, CA property. The mixed-use asset includes the Ritz-Carlton resort, an existing hotel that was renovated and converted into a luxury resort, as well as the addition of 16 for-sale residences.
The fixed-rate, non-recourse, interest-only loan was arranged by Continental Partners’ Mitch Paskover. The sponsor was an undisclosed private real estate investor and developer. It used the loan to replace the maturing construction loan to buy out an existing partner on the property at 68900 Frank Sinatra Dr.
“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%, providing a loan amount that met the borrower’s objectives,” Paskover said. “We also successfully identified a lender that would release the existing condos and Phase II from the new loan.”
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