Versant Commercial Brokerage Completes Recapitalization of Philadelphia Airport Hampton Inn
Assists Tenant-in-Common Owners with New Financing, Partial Sale of Investor Equity, and 721 Rollup
SAN DIEGO, July 1, 2015 /PRNewswire/ -- Versant Commercial Brokerage, Inc. announced today that it has successfully recapitalized the Hampton Inn – Philadelphia Airport located in Philadelphia, Pennsylvania. Versant assisted the tenant-in-common investors by originating the new financing, purchasing the TIC interests of those who needed to exit the investment, and utilizing Internal Revenue Code Section 721 to roll up the TIC structure into an LLC on a tax-deferred basis.
Versant completed this complex transaction in 180 days. The new debt of $17,800,000 has a fixed rate of interest of 4.79% for ten years. Monthly distributions to the investors will increase by approximately 50%. As part of the restructuring, the hotel will be undergoing a $3.25MM property improvement plan. "We are extremely pleased with this result," commented Matt Mueller, President of Versant. "We cashed out the TIC owners who needed to sell, and helped the other owners stay in the property on a tax deferred basis with a hefty increase to their distributions." Versant also eliminated the Master Lease structure in order to lower costs and give the investors more control over their asset.
The tenant-in-common investors also opted to replace their former asset manager, sponsor, and hotel manager. The TIC investors selected Clear Vista Management as their new asset manager, Virtua Partners as the new sponsor, and Synergy Hospitality as the new hotel manager. "This was a complex and difficult process, but we are very happy with the result," said Scott Baron, head of the Steering Committee. "It was incredibly important to give our TIC investors the option to stay in the investment or cash out. This enabled the group to maintain unity and deal with issues in a rational manner. We are relieved that our investment has been restructured and look forward to the increased distributions."
About Versant Commercial Brokerage
Versant Commercial Brokerage, Incorporated is a commercial real estate firm that focuses on recapitalizing tenant-in-common owned properties. Versant specializes in providing high quality investment opportunities for individual investors by creating access to exclusive deals. Our professionals have consulted on over $3,000,000,000 of commercial real estate engagements.
Through a private network of investors, we provide debt and equity capital for commercial real estate projects. Our network of relationships, sophisticated analyses, and experience in deal structuring give us unique capabilities to place debt and equity for real estate projects nationwide.
Our investors obtain superior returns by directly investing in exclusive opportunities. We reduce costs by eliminating redundant financial intermediaries.
Please visit http://www.versantcre.com to learn more about our investor services.
Media contact:
Derek Uldricks
619-764-9633
SOURCE Versant Commercial Brokerage
Share this article