PHOENIX, Sept. 01, 2017 (GLOBE NEWSWIRE) -- Virtua Partners announced today that it has successfully recapitalized a 190 room SpringHill Suites Marriott located at 1400 Old Spanish Trail in Houston, Texas. Virtua Partners affiliate Versant Commercial Brokerage provided the restructuring services, including the origination of a $20.4MM senior loan and $2.3MM in preferred equity. Versant structured the transaction utilizing Internal Revenue Code Section 721 in order to defer taxes for the owners.
As part of the restructuring, the hotel will be undergoing an extensive $5.3 million property improvement plan, which will upgrade the facilities to current Marriott standards. Hotel Equities is the new hotel manager, and Virtua affiliate Clear Vista Management is the new asset manager. Virtua affiliate Quyp Hospitality will be overseeing the property improvement plan.
"This was a challenging transaction and we're glad to wrap it up," said Matt Mueller, President of Versant Commercial Brokerage. "In particular, it is difficult to raise preferred equity above 80% loan to value, given the tight credit markets for commercial real estate debt."
"We appreciate the perseverance of our team members and outside staff, particularly Hotel Equities," said Quinn Palomino, Co-Founder of Virtua Partners. "The hotel is in an excellent location between the Texas Medical Center and NRG stadium. We are looking forward to improving operations and completing a top to bottom renovation."
About Virtua Partners:
Virtua Partners is a private equity firm specializing in commercial real estate. Virtua sponsors a variety of investment funds and commercial real estate projects across the United States and currently has 16 million square feet of assets under management or development.
Our investment products range from fixed income to aggressive growth in a variety of asset types including office, flex office, industrial, hospitality, single family residential, multi-family and mixed-use projects. Virtua Partners and its affiliates provide debt and equity origination, asset and property management, debt restructuring, commercial real estate development, and fund management.
Please visit http://www.virtuapartners.com to learn more about our investor services.