UC Funds provides the first mortgage loan for a luxury hotel redevelopment in Savannah’s historic district
Savannah, GA – March 29, 2018 – UC Funds, a vertically-integrated commercial real estate specialty finance firm, announced today the recent closing of an $18 million first mortgage loan for conversion of the Drayton Hotel, located at 7 Drayton Street in the heart of Savannah’s historic district. The property, listed on the National Historic Register, was built in 1920 as a 30,907-gross-square-feet (GSF) five-story office building. Upon completion, the vacant building will be a 50-key, six-story luxury boutique hotel.
UC Funds’ loan will be put towards the renovation and furniture, fixtures, and equipment (FF&E) funds, helping turn the existing building into one of Savannah’s highest profile hotels with top-tier amenities, a speakeasy, coffee shop, and diverse dining options.
UC Funds worked closely with sponsors Raghav and Parmod Sapra to close the transaction. The Sapras have enlisted Nitin Khanna, an experienced hotelier, to manage day-to-day operations. The property’s extensive food and beverage services, which include a ground-floor restaurant, basement bar and rooftop lounge, will be managed by Indigo Road Hospitality, one of the Southeast’s preeminent food and beverage managers. The capital stack was completed with a $5.1 million bridge loan from Octagon, a tax credit bridge investor and longtime partner of UC Funds, along with $5.3 million in borrower equity.
Construction for current renovations to the Drayton Hotel is set to be completed in 12 months, with the hotel opening the next month. The restaurant and rooftop bar are expected to open one month prior to the hotel.
“This loan represents the closing of yet another highly profitable adaptive re-use transaction utilizing federal and state historic tax credits, an investment type that UC Funds specializes in,” said Daniel Palmier, President and CEO of UC Funds. “The Sapras presented us with a profitable venture knowing the extent of our expertise, and we have no doubt the hotel’s success will add value to Savannah’s thriving tourism industry.”
Savannah is best known for its architecture, history and southern colonial influences. The city offers a multitude of Victorian-style homes, forts, and public squares, and its downtown region is hailed as one of the largest National Historic Landmark Districts in the United States. Visitors are attracted to the area’s rich culture, as well as its ideal proximity to Georgia’s cost. Along with a steady stream of tourists, the city boasts a diverse population of students from Savannah State University, Georgia Tech: Savannah, Armstrong University, and Savannah College of Art and Design.
Providing over $2 billion of capital solutions to date, UC Funds is known as the “go to” commercial real estate capital provider and the most sophisticated financial ally in the industry. Their team is dedicated to developing and maintaining long-term relationships with borrowers, and the company has earned a strong reputation for providing extensive reliability, standing by borrowers through completion. Those interested in learning more about UC Funds can visit www.UCFunds.com.
About UC Funds
Founded in 2010 by Daniel M. Palmier, UC Funds is a vertically integrated commercial real estate specialty finance firm that originates, structures, underwrites, and asset manages its estate investments. A national balance sheet provider of both debt and equity capital solutions, UC Funds has provided over $2 billion of capital solutions to date. UC Funds offers quick and customized financial solutions throughout the entire capital stack, including joint venture equity. One of the nation’s most entrepreneurial lending institutions, UC Funds focuses on multifamily, retail, office, hotel, industrial/warehouse, adaptive reuse, and construction assets nationwide. The firm has developed strong relationships with past and current borrowers through their renowned customer service, creativity, speed, and reliability. In July 2017 UC Funds announced the launch of their industry leading non-recourse commercial mortgage bridge loan, UC GO. This is the most transformative and competitive commercial mortgage product available in commercial real estate. The variable rate non-recourse product, which starts at LIBOR +350, is available for loans as little as $5 million. To apply for UC GO financing, please contact Domenico Manago, Managing Director of Sales, at 857-288-2811 or email Dmanago@ucfunds.com. For more information on UC Funds, visit www.UCFunds.com or https://danielpalmier.ucfunds.com/.