Investment Property Capital is pleased to announce the recent funding of the purchase of the Nazareth Hotel, a 40 room Singel Resident Occupancy (SRO)hotel in the Tenderloin neighborhood of San Francisco. The building consists of the hotel operation plus 3 ground floor commercial tenants.
A business is only as good as its lease. In this case, the buyers had been leasing the hotel from the property owner for many years, and their lease terminated. They were operating month to month and feared losing their business, along with all the money they had spent on improving the hotel. The building owner offered to sell them the property, but they did not have the capital at hand for a downpayment.
IPC was retained by the buyers to obtain the capital for both the downpayment and purchase of the property. By restructuring the debt on two other buildings owned by the buyers, we were able to accomplish three goals; 1)provide the cash-out needed as down payment for the purchase 2) arrange favorable terms for the new purchase money debt, and 3) set up long-term finance solutions with easy, step down prepayment terms.
Our clients never have to worry again about a lease termination; as building owners, they are now in control of their destiny.