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MetroGroup Arranges Loan for Brand Conversion on Best Western
MetroGroup Realty Finance provided a $13.9-million loan for the conversion of an existing 99-key Best Western to a Home 2 Suites by Hilton hotel located in San Mateo. VP J.D. Blashaw led the MetroGroup team in providing the facility.
The client acquired the property opportunistically with an acquisition bridge loan. MetroGroup’s initial $9.5-million funding retired the bridge loan and provided $4.4 million of future funds to execute the higher brand conversion.
The floating-rate senior loan was provided a national bank based in Missouri. It featured a five-year term with a three-year floating rate period and interest-only debt service during the construction and brand conversion, then a two-year perm option upon stabilization.
“Our client has an established track record of hotel development and asset management and leveraged their longstanding relationship with Hilton to secure this property in a core market,” said Blashaw. “We were able to provide our client terms that fit their business plan and risk objectives.”
- ◦Development
- ◦Financing