Cronheim Hotel Capital secures $100 million warehouse line/back-leverage facility for national hotel debt fund

Chatham, NJ Cronheim Hotel Capital (CHC) has sourced and closed on an initial $100 million warehouse line/back-leverage facility for a national hotel debt fund. The initial facility was structured with the capacity to grow to $500 million. Key terms include:

• Non-mark to market

• Match term to underlying collateral

• 2- year term with automatic renewals

• 70% advance with potential up to 80% depending on collateral value.

Michael McGuire, executive director, said, “The commercial real estate lending market has seen a significant amount private capital enter the space via debt funds, and the lifeblood of the funds is leverage in the form of warehouse lines and back-leverage. Very few brokers are knowledgeable of these structures and, as the former manager of Peachtree Group’s fund leverage, I am in a unique position to assist other funds.”