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Another Condominium Hotel Conversion in FL

Thursday, October 19, 2017
Borrower   A Land Trust owned by a developer and a Hotel Operator on Kissimmee, Florida.
Loan   a $9,600,000 loan at 12% the first year, 15% the second, and $18% for the third year.
Collateral   A 144-unit multifamily rental unit complex.
Guarantors   The principals of the borrower.
Purpose   The loan enabled the borrower to close on the purchase of the complex and start renovation work. The units will be 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 Borrower plans to pay us off out of the sale of units. 
Outcome   The loan is in default. The Borrower has paid down 26% of the principal from the sale of collateral. The loan, however, is in default.




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