14 Dec WAC Closes Loan to a Relais & Chateau Branded Boutique Hotel Located in Mystic, CT
December 14th, 2018: Worth Avenue Capital, LLC is pleased to announce that it just successfully closed a $125,000 loan to a Relais & Chateau branded boutique hotel that is located in Mystic, Connecticut. The hotel is an existing WAC borrower and this loan was completed as a follow on transaction in which the loan proceeds were used by the borrower as a partial payment towards the buyout of a non family member partner in the corporate entity. The loan is secured by a blanket mortgage on the hotel property in Mystic, Connecticut as well as a mortgage on a commercial property that is located in Northeastern Connecticut with an underlying LTV of approximately 60%. The loan was funded by one of WAC’s private investors.
As is common practice with WAC’s private financing products, the borrower needed to proceed quickly so WAC funded this loan request within ten days. The borrower expects to pay off this loan through the generation of cash flow in the hotel as well as obtaining more permanent financing from a conventional lender.