THE ARHOSPITALITY CAPITAL
DIFFERENTIATOR
The Firm’s professionals have extensive experience in advising and preparing clients to access the capital markets for acquisition financing, the refinancing of existing assets or construction + redevelopment project financing. Assistance includes modeling various leverage strategies including fixed + floating rate mortgages, mezzanine debt, preferred + bridge equity, balloon risk, debt service reserves, future funding scenarios, credit enhancement alternatives and take-out options.
Our own experience as bankers setting the credit and underwriting requirements for financing enables us to first prepare our clients for the process and then produce a customized loan request memorandum prior to soliciting financing proposals – each asset has a unique “story” that must be effectively communicated to lenders.
Our team then executes a competitive process with multiple financing sources to optimize the client’s cost of capital and maximize flexibility under lender covenants. Upon receipt of a lender term sheet, we assist clients in negotiating preferential terms relative to the unique features of the asset being financed.
Consistent with the innovative capital solutions ARH delivers, our clients benefit from a more thoughtful and flexible approach to fee structures. Do you expect more than the industry standard “one size fits all” approach?
| 25% Fee Discount With Lender Paid Correspondent Fee | Through ARH’s extensive experience in loan underwriting and transaction management we assist lenders in expediting the loan approval process. Select Non-Recourse CMBS and balance sheet lenders will provide Correspondent Fees for this assistance allowing Hospitality House to off-set your financing fees. |
| Deferred Fee | Where transaction costs may not leave sufficient loan proceeds to pay-off your existing balance, ARH can work with you to maximize available loan proceeds by deferring some or all of its fee. |
| Scaled Fee | ARH recognizes that as transaction sizes increase a linear increase in fees may not be justified. We scale fees and offer break-point discounts based on transaction size and complexity of the financing. |
| Programmatic Fee | Our clients may be undertaking a sequential acquisition strategy to build a portfolio or serial refinancing strategy where a discount is appropriate under our Programmatic Fee in connection with ARH being retained to assist with each financing. |
| Standard Fee | Competitive with current market fees, typically 1% of loan proceeds, fees on future engagements may be prorated upon qualifying under the Scaled or Programmatic options above. |