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California  + Bay Area  + Finance  | 

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.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Development
  • ◦Financing
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