NGKF Capital Markets secured a $19.5 million first-mortgage loan with Starwood Mortgage Capital to refinance the 100-room, boutique Iron Horse Hotel at 500 West Florida Street in Milwaukee, Wisc.
“Lender interest was strong, given that this is one of the most unique and top performing hotels in the city,” said NGKF Senior Managing Director Ben Greazel, who arranged the financing. “In 2008, the hotel was converted from a century-old warehouse building. Its upscale offerings are geared toward business travelers and motorcycle enthusiasts alike.”
The new mortgage is fixed at 4.4% for 10 years with a 30-year amortization schedule, providing a lower cost of capital for owner Rider Hotel LLC.
“The capital markets are very favorable for hotel investors,” said Mr. Greazel. “Current rates for well positioned, stabilized assets range from 4.0% to 4.5% for 10-year, fixed-rate money.”