By Anca Gagiuc
Mission Capital Advisors’ debt and equity finance group has arranged a $15.3 million acquisition loan on behalf of Midas Hospitality for the newly built Staybridge Suites Houston–Medical Center. The 120-key, extended-stay hotel is located at 9000 South Main St. in Houston, Texas.
The hospitality asset opened in January 2017 in the Texas Medical Center submarket, near NRG Park convention center, NRG Stadium, Rice University and the Texas Medical Center. The franchised property serves long-term travelers—internationally, roughly 60 percent of Staybridge Suites guests make arrangements for five or more nights. Hotel amenities include a fitness center, business center, meeting room, barbecue grills, self-laundry facilities and an outdoor pool. In-room amenities include 42-inch cable TVs, fully equipped kitchens with cooktop stoves, full-size refrigerators and dishwashers.
Mission Capital Advisors’ Philip Justiss, Alex Draganiuk and Lexington Henn structured the recourse loan from IBERIABANK.
“As a rare new hotel in this area of Houston, the Staybridge Suites is a very attractive asset, but the property’s lack of operating history was a challenge for some lenders,” Justiss said in a prepared statement. “Additionally, with the struggling oil market, there are some capital providers who are generally limiting their exposure to Houston. Despite these challenges, we were able to secure interest from a wide range of lenders and provide the sponsor with both recourse and non-recourse options from banks, hedge funds and debt funds. IBERIABANK was the right choice for a number of reasons, but the determining factors were that they understood the sponsor’s financial needs, their business plan and the asset, which is in their backyard.”
“The quality of this hotel is unquestionable, and we have complete confidence that its best-in-class amenities and prime location will attract a steady stream of visitors,” added Midas Co-Founder J.T. Norville. “We were also able to negotiate and structure a mutually beneficial long-term agreement with the IHG brand, one of our three preferred brands across our portfolio.”
Images courtesy of Mission Capital Advisors and property website