Spirides Arranges $7.5 million hotel construction loan for new Hilton in Florence, SC

Spirides Arranges $7.5 million hotel construction loan for new Hilton in Florence, SC


TAMPA, FL—Spirides Hospitality Finance Company has successfully arranged and its client has closed on a $7.5 million senior loan facility from a southeast U.S. headquartered bank to finance the development of a new Hilton Tru Hotel in Florence, SC.  The terms of the financing are as follows: The first 18 months during construction will have mortgage payments which are interest only, priced at the prime interest rate plus .50% (currently 4.50%) per annum, adjusted quarterly.  Upon completion of construction, the loan payments will convert to a 25 year fully amortizing principal and interest monthly loan payment schedule.  The interest rate of the permanent loan will be fixed for five years, then adjusting every 5 years.  The interest rate will be priced using the 5 year SWAP rate plus 3.55% (currently 5.55%) per annum.  The loan amount was sized using a 75% Loan to Cost ratio, and there is no prepayment penalty after the first five years of the loan.

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