CIM Group has finalised a loan of $167.67m to affiliates of Concord Hospitality and Whitman Peterson, through the former's CIM Real Estate Debt Solutions business and on behalf of a managed fund.
The financing aims to recapitalise a portfolio comprising 15 WoodSpring Suites extended-stay hotels across Florida, North Carolina, Michigan, and Tennessee.
The arrangement consists of an initial funding amounting to $117.67m, with the potential for an additional $50m designated for earn-out opportunities and possible expansion of the hotel portfolio.
WoodSpring Suites operates as an economy extended stay brand in the hospitality sector. The hotel provides accommodation with features such as in-room kitchens, complimentary Wi-Fi, laundry facilities accessible at all hours, vending machines, and a fitness centre.
The transaction follows CIM Group’s strategy to focus on the hospitality industry, which includes investments in select-service and extended stay hotels.
In 2023, the company implemented this approach and has since completed similar transactions, including a $75m loan for a select-service hotel property in San Diego.
Last year alone, funds managed by CIM originated more than $1bn in commercial real estate loans.
Seyfarth Shaw acted as legal counsel for the lender during the transaction.
Since its founding in 1994, CIM Group has completed more than $60bn in real estate and infrastructure projects throughout the Americas.
The company engages in lending activities through mortgage and mezzanine loans, and provides bridge and construction financing solutions for commercial real estate owners and developers in major US markets.
In September 2023, CIM Group closed two separate loans for hotels in Florida.
The first, a $34.97m senior loan, was provided to a joint venture between Monarch Alternative Capital and HHM Hotels and was secured by the dual-branded Aloft/Element hotel in Orlando, which was completed in 2021.
The second transaction involved a $28.9m whole loan to Newbond Holdings, secured by the Aloft hotel in Tampa, a 130-room property that opened in 2014.
