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$15M Loan Spurs Staybridge Suites Buy
Midas Hospitality obtained $15.3 million in acquisition financing to nab the 120-key Staybridge Suites Houston-Medical Center. Philip Justiss, Alex Draganiuk, and Lexington Henn with Mission Capital structured the Iberia Bank recourse loan for the asset at 9000 S. Main St.
The property, sold by Pride Management Inc. in Beaumont, TX, opened in January 2017 in the Texas Medical Center submarket. Justiss noted that the location and asset were both attractive, however, a lack of operating history was a challenge. “Additionally, with the struggling oil market, there are some capital providers who are limiting their exposure to Houston,” he added.
Midas Hospitality’s reputation led to Iberia Bank’s willingness to provide a recourse loan. “The sponsor is a very sophisticated hotel operator, with the unique ability to judiciously scale corporate growth and ramp occupancy at their properties,” Draganiuk said.
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