Deal Close
June 30, 2026
Type
Hospitality, 68 rooms
Loan Amount
$4,680,000
Patrick Mazzamaro
Debt Placement Team
Executive Summary
The sponsors here — owners and managers of about 15 hotels across Ohio and Kentucky, sourced through a cold call — bought this distressed property in 2023 using SBA financing and invested roughly $1.5 million to bring it back to stabilization.
Once the numbers supported it, Greysteel arranged permanent, cash-out refinancing that better matched the stabilized business, freeing up over $500,000 to fund their next acquisitions.
The Challenge
The original acquisition debt reflected a distressed-asset entry point and wasn’t structured for a stabilized property, and the sponsors needed permanent financing that matched where the business actually stood after two years of repositioning work.
Greysteel structured a cash-out refinance sized to the stabilized performance, with flexible enough terms — including no prepayment penalty — that the sponsors could exit into a sale or further refinance whenever it made sense for their growth plans.
Results
- $4,680,000 loan closed, including over $500,000 in cash-out proceeds
- 10-year term, 6.8% fixed for the first five years, no prepayment penalty
- 1.25x minimum DSCR, full recourse
- Proceeds earmarked for additional hotel acquisitions and a planned nearby development
“Greysteel secured permanent financing that better aligned with the stabilized asset, providing more than $500,000 in cash-out proceeds to support the sponsors’ future acquisitions and development plans. The loan featured a 10-year term, a fixed rate for five years, and no prepayment penalty, offering flexibility for future growth.” — Patrick Mazzamaro, Greysteel Lead Deal Contact, Debt Placement Team
Greysteel Advisory Expertise
Greysteel is a commercial real estate advisory firm specializing in investment sales and debt and structured finance, serving private investors, middle-market operators, and institutional clients nationwide.
The firm provides sector-focused advisory across multifamily, healthcare, and affordable housing and other commercial real estate asset classes, delivering market intelligence, capital markets expertise, and disciplined execution.
