November Spotlight: One Size Does Not Fit All

November Spotlight: One Size Does Not Fit All
by Leslie Wilkins

Whether you’re talking about Halloween costumes, t-shirts, or commercial loans, one size doesn’t fit all. Financing needs are unique; apart from the loan vehicle and debt size, there are many other
aspects to consider.

We analyze each client’s needs prior to engagement, so we can try to pair their needs with the
appropriate loan structure. We don’t try to fit your loan into preconceived notions. It’s
important that our team understands why you are seeking funding, what this funding will allow
you to do and what the possible impediments could be for obtaining and closing the loan, as
well as properly managing those payments over time.

TownePlace Suites by Marriott – Jacksonville, FL

The proposed TownePlace Suites by Marriott in Jacksonville, Florida is a perfect example of an
individually tailored plan.

Our client had really proven himself as an accomplished hotel developer. He owns and operates
successful properties around Jacksonville and understands his market and its needs.

Jacksonville’s economy is strong, which positively impacts the hospitality economy. Jacksonville
is a large port city and has large employment in military and government. In addition, there are
several large hospitals nearby, including the renowned Mayo Clinic. The combination of all of
these employers as well as the need for extended stay products among the patients and
patients’ families of the nearby medical centers are large drivers of room demand.

Fortunately for our client, there was a shortage of extended stay properties in his submarket
and he intended to address that shortage. Our client had purchased a nearby plot and sought
out funding for an upper midscale hotel, one which would cater to both short-term and
extended stays. In order to maximize his purchase, his team retrofitted the six-story
development into the smaller plot size.

GRP sought a local lending partner, one who understood the market and its needs. However,
we understood that six-story properties are more expensive per square foot than five-story
properties, which was the typical model for TownePlace Suites. Through our urging, we were
able to get our lending partner comfortable with the higher construction budget, because it
would allow for more guests in a smaller footprint. In addition, we were able to draw attention
to the current creditworthiness of our client.

The loan closed in mid-October and construction is expected to commence before the end of
the year. The hotel should be ready for occupancy in early 2020.


What are your short-term and long-term revenue goals?
Are you looking for a funding in order to consolidate debt? Are you thinking of changing a
franchise association to drive more business? Do you see aspects of your business that show
obvious trends towards growth?

Should you utilize Small Business Administration funding?
Do your needs for funding meet their qualifications? Does their loan structure fit your holding
period? Can your property sustain the cost of capital in the event of a rate hike?

What kind of structured loan works the best for you?
Do you need a longer or shorter term? Do you need an interest only payment structure during
renovation?

How will this loan be secured?
What role will collateral play? How many guarantors will there be and what are their roles in
your organization? Do you have a mix of personal and corporate guarantors?

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.