Texas Border Business
MCALLEN, Texas – Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, arranged a $8,775,000 loan for the acquisition of the Casa de Palmas Hotel, a 165-room, luxury hotel located at 101 N Main Street in McAllen, TX.
The financing was secured by Robert Bhat, Senior Vice President, Capital Markets, based out of the MMCC Miami office.
“This hotel is located in Downtown McAllen, TX, which is a rapidly growing market. The primary demand drivers are border protection related companies and municipalities,” said Mr. Bhat. “The luxury hotel, designed in classic Spanish Colonial Revival architecture, was originally built in 1918 and recently renovated in 2020.”
The MMCC team secured 65% LTV non-recourse acquisition financing with a 10-year term and 30-year amortization.
According to Marcus & Millichap’s 2022 Midyear Hospitality National Report, the hotel sector put most pandemic challenges behind as travel demand improved. Room demand through the first six months of the year has been in line with bookings from the same windows in 2017 and 2018, only trailing the record 2019 span by about 3 percent.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2021, MMCC closed 2,474 transactions totaling $11.6 billion. To learn more, please visit: marcusmillichap.com/financing
