iBorrow Blog

iBorrow Provides $3.875 Million Loan to Refinance Shilo Tacoma Hotel

As published by Business Examiner, iBorrow has provided a $3.875 million loan to refinance Shilo Tacoma, a 76,230 square foot full-service hotel located in Tacoma, Washington. The hotel includes 132 rooms, flexible meeting space and a breakfast area. The proceeds of the loan will refinance an existing CMBS loan, which was successfully re-negotiated by the borrower.

“The borrower’s long and distinguished track record of operating hotels made our decision to refinance the property an easy one,” said iBorrow CEO Brian Good. “Though we had very little lead time before the transaction needed to be closed, iBorrow was able to offer a quick solution to the borrower's needs because the loan, as structured, provided a compelling investment opportunity."

Shilo Inns is one of the largest privately owned and successfully operated hospitality companies in the country. Hospitality properties like Shilo Inns are much needed in the Tacoma market, where the population has grown significantly over the past five years, resulting in an increased demand for hotel rooms, with the hotel remaining close to fully occupied during the May – October tourist season. Further, the property’s location is adjacent to numerous attractions, including the Tacoma Dome, the combined McChord Air Force Base and Ft. Lewis Army Base, and the Great American Casino.

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iBorrow Provides Loan for Development of Two Seattle Luxury Boutique Hotels

As published by Rentv.com, iBorrow provided a $5.1 million loan to convert a 25,430 square foot historic Seattle building into a luxury boutique hotel, as well as a $4.6 million loan to develop a 24,000 square foot office building space into a luxury boutique hotel. Both properties are located in the Pioneer Neighborhood of downtown Seattle, located just minutes away from Century Link Stadium, the Seattle Waterfront and Pike Place Market.

When fully renovated, the first property, located at the intersection of 1st Avenue South and South Washington Street, will be an amenity-rich 25-room luxury hotel featuring a restaurant, coffee shop, large music venue and full bar. The second property, located at the intersection of Second Avenue and Yesler Way, will include 38 rooms, a wine bar, restaurant and lounge, two roof decks, an outdoor coffee bar and a basement entertainment venue.

“These properties are still a year from being fully renovated,” said iBorrow CEO Brian Good. “Seattle is one of the strongest real estate markets in the country, and given these buildings’ prime location, we believe that once the renovations are complete, the hotel revenue will be significant.”

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Stockton Holiday Inn is Refinanced

As published by Central Valley Business Times, iBorrow provided a 73-room Holiday Inn Express and Suites with a $7 million loan. The borrower plans to use the money to pay off existing loans and upgrade the property.

Operating results at the Holiday Inn Express have improved over the past year, likely as a result of increased demand from the two large-scale projects that were recently completed nearby: a 1.4 million-square-foot state prison healthcare facility housing 3,000 inmates and employing 2,500 people, and a 431,000-square-foot Tesla manufacturing facility.  

“This is a high-quality loan, as the property generates significant cash flow. Despite this, the loan was challenging because the borrower required a quick close and could not wait to obtain traditional financing,” says iBorrow CEO Brian Good.

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The Promised Land: What’s Next for Portland Real Estate?

A booming city filled with millennials and jobs, Portland’s market has drastically changed over the past several years – especially in the real estate arena. The evolving market has brought more than 41,000 new metro-area residents who are in search of both residential and commercial properties.

Portland Monthly turned to iBorrow CEO Brian Good for further insight on Portland’s emerging real estate market in the article “Rising Prices. Fierce Bidding Wars. What’s Next for Portland Real Estate?”

With some looming global uncertainly, Portland residents worry about growth and affordability; however, the city’s real estate hasn’t showed any signs of slowing. “Portland will get bigger and better,” said Good. “Any problems will be high-end problems.” As the city continues to grow, its existing inventory is rapidly depleting, but with developers flocking to the area, new buildings, retail spaces and homes are contributing to its vast economic growth.

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iBorrow Provides $7 Million Loan to Refinance Stockton Holiday Inn

-- Economic developments drive demand for hotel accommodations --

LOS ANGELES— iBorrow, a direct lender of private money loans for commercial real estate, has provided a $7 million loan to refinance a 73-room Holiday Inn Express and Suites located in Stockton, California. The borrower plans to utilize the funds to pay off existing loans, and upgrade the property.

Operating results at the Holiday Inn Express have improved over the past year, likely as a result of increased demand resulting from two large-scale projects that were recently completed nearby: a 1.4 million-square-foot state prison healthcare facility housing 3,000 inmates and employing 2,500 people, and a 431,000-square-foot Tesla manufacturing facility. The hotel also benefits from consistent business from the University of the Pacific in Stockton, which is close to the hotel.

“This is a high quality loan, as the property generates significant cash flow. Despite this, the loan was challenging because the borrower required a quick close and could not wait to obtain traditional financing,” said iBorrow CEO Brian Good. “There aren’t many comparable properties in the area so the valuation was a challenge. We had to step back and study the key economic drivers in the market which, when studied, showed an increased demand for hotel rooms. Of equal importance was the fact the borrower has a track record of strong hotel operating performance, which made us comfortable to provide financing for this project and borrower.”

The loan was originated by Will McCabe, Vice President of Loan Originations at iBorrow.

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An Alternative to Traditional Lending: Will McCabe Authors Commercial Investment Real Estate Article

After the 2008 financial crisis, traditional lending sources were unable to provide the same loans they had previously made, and as a result, the floodgates opened for nontraditional lending sources that could fill the void.

In his Commercial Investment Real Estate article “Shadow Banking,” Will McCabe, Vice President of Loan Originations at iBorrow, addresses the shadow banking space and the challenges facing the industry.  

 

Unsecured debt is exemplified by the way credit cards work – a borrower can effectively delay repayment obligations for years until the lender files a notice of default, and even then, the disputes are taken to courts where a judge could potentially decide that the lender is not owed the principal balance in full. “While a personal guarantee from the borrower provides some safety for a lender, there is no doubt that it is easier to underwrite the value of real assets, such as real estate, equipment, or inventory, as opposed to gamble on a borrower’s net worth,” writes McCabe. 

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Jeremy Michaelson Joins iBorrow as Loan Originator

LOS ANGELES — iBorrow, a private direct lender for commercial real estate, is pleased to announce that Jeremy Michaelson has joined the firm as Vice President of Originations. Michaelson has several years of experience in the real estate industry, from underwriting and closing multi-million-dollar transactions to project development and property management.

In his new role, Michaelson will work with the firm’s borrowers to develop and structure loans based on borrowers needs and objectives.

“Our firm is growing and in order to fulfill the demand of our borrowers and our investors, we need to substantially increase our loan origination volume.  Jeremy is an experienced loan originator with a proven track record who has closed numerous transactions – from small balance residential bridge loans to larger commercial transactions of apartment buildings and marketplaces. We are excited to have Jeremy join our growing team,” said iBorrow CEO Brian Good.”

Prior to joining iBorrow, Michaelson served as the Director of Loan Origination at Post Investment Group | Park West Financial, where he originated, underwrote and closed more than $10M in residential bridge loans. He also previously worked at George Smith Partners as Assistant Vice President, where he closed more than $100M in real estate transactions. Michaelson is a graduate of Northeastern University, D’Amore-McKim School of Business.

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Honoring Outstanding Achievements in Commercial Real Estate: iBorrow Receives Award for Fund of the Year

Earning a spot on Real Estate Finance & Investments 2017 Awards list, iBorrow received the award for “Fund of the Year – Niche Strategy.” The objective and strategy of the iBorrow fund is to fill the void created by traditional banks’ reticence or inability to provide certain types of lending to certain types of borrowers, by providing first trust deed loans collateralized by bank-worthy commercial real estate.  

 

Following the 2008 U.S. financial crisis, regulations and changes to business practices among traditional lending institutions greatly impacted lending, both from the lender and borrower's perspective. Banks can no longer lend against real estate collateral as freely, and they can no longer expect to make the same margins. As a result, many commercial transactions that would have been approved are now being rejected.

Real Estate Finance & Investment Awards recognize and reward real estate finance professionals that have demonstrated exceptional performance and innovation over the past 12 months.

 

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Investment Associate Jeanna Sterman Joins iBorrow

LOS ANGELES — iBorrow, a private direct lender for commercial real estate, is pleased to announce that Jeanna Sterman has joined the firm as an Investment Associate. Sterman has several years of experience in the real estate industry, and is well-versed in underwriting transactions and managing the closing process.

In her new role, Sterman will be responsible for coordinating the loan origination, and underwriting and managing the closing. She will also have an integral role in guiding funds and investors through deal terms and diligence materials relating to each loan.

“We have been searching for someone with Jeanna’s capabilities and skill set to assist with the growth of our company and transaction volume,” said iBorrow CEO Brian Good. “Her passion for the real estate industry, coupled with her communication skills makes her a great addition to the iBorrow team. We are excited to have her assist in our growth trajectory and maintain our relationships with borrowers and investors.”

Prior to joining iBorrow, Sterman served as an agent assistant at John Aaroe Group where she sourced transactions and managed closing processes. She also previously worked at Coldwell Banker, assisting with document preparation, purchase offers and disclosures. Jeanna is a graduate of Boston University.

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iBorrow Promotes Lucas Allen to Vice President of Corporate Development and Will McCabe to Vice President of Loan Originations

LOS ANGELES — iBorrow, a private direct lender for commercial real estate, announced two senior management promotions effective immediately; Lucas Allen has become the Vice President of Corporate Development and Will McCabe is now Vice President of Loan Originations. Previously, Allen was iBorrow’s Director of Loan Originations and McCabe served as Loan Coordinator/Investment Associate.

In his new role as Vice President of Corporate Development, Allen will be responsible for identifying lending verticals, and devising and implementing related marketing strategies for iBorrow nationwide. He has extensive experience developing prospective relationships to secure deal flow, pricing loan opportunities based on the market and area, and identifying appropriate borrowers given iBorrow’s core lending criteria..

McCabe will work closely with iBorrow’s borrowers to develop and structure loans based on borrowers needs and objectives, with a focus on originating CRE bridge loans that conform to iBorrow’s standards and requirements. McCabe, who has been working closely with Allen for two years, will assume Allen’s responsibilities and will work closely with Allen during a transitional period

“These promotions are well-deserved and reflect the dedication and success Lucas and Will have demonstrated,” said iBorrow CEO Brian Good. “Lucas has been a valuable asset to our firm, and has proven to be one of the most talented lending professionals in the industry and will be helpful to us as we look to grow our business and expand into new markets. Will has proven his ability to originate and underwrite loans within our unique approach to lending and this promotion is the next logical step for our business. We are thrilled to have them on our team and look forward to their continued success.”

Prior to joining iBorrow, Allen was Director of Sales with Rodeo Capital, Inc. and McCabe worked at a hospitality-oriented real estate development firm.

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