Pubsy.com

Condominium-Hotel in Kissimmee, FL

Monday, December 18, 2017
Borrower   A special-purpose entity created for the transaction
Loan   a $4 million, three year loan at 12% in the first year, 15% in the second and 18% in the third year.
Collateral   The loan is secured by a first mortgage on 56 condominium units and two pad sites in the new "Parkway Palms Resort Maingate Condominiums," which is a former Hilton hotel in Kissimmee, Florida.  24 of these units have been sold under contracts which will not close until after the Closing.
Guarantors   The principals of the borrower
Purpose   The loan (together with sales proceeds of 100 units) will fund the $14.5 million purchase price. The units are sold to investors who might spend a week each year visiting the Orlando entertainments. In their absence the units are rented out as hotel rooms. The market for this investment is very strong.
Exit strategy   The borrowers planned to repay the loan from the proceeds of sales of condominium units.
Outcome   The loan was repaid within five months, and the developers have done very well out of the deal.




Pubsy.com - all rights reserved

Valid HTML 4.01 Transitional

Textures courtesy of the Absolute Background Texture Archive