Crowne Tower Apartments – Mezzanine Debt
Download Offering Memorandum
Vivo Investments Group, LLC
Total Mezzanine Loan Amount:
11% net to investors
40 months, with two six-month extensions
1% origination + 1% exit
1 This summary is incomplete. Each prospective investor should review the equity Offering Memorandum and the Mezzanine Financing Executive Summary, which collectively include additional details about the Loan terms, Loan structure, Property, Project, and investment risks. Coupon rate is 12% fixed, with a 1% servicing spread to Fairway America, LLC.
Mezzanine Debt Structure1
Property and Project Details1
The Project will be the 20th investment the Co-Managers have acquired together. These include multiple acquisitions through the Fairway Vivo GP Fund LLC (the “GP Fund” or “Manager”), which targets functionally obsolete limited-service and extended-stay hotels in markets with few quality affordable housing options that can be acquired at what we believe to be an attractive all-in cost basis. The Co-Managers seek to convert the hotel property into affordable studio, one- or two-bedroom apartments. Once the conversion is executed, the Co-Managers intend to recapitalize or sell the Property.2
Download Term Sheet
Property & Renovation Summary2
- Holiday Inn tower was originally developed as apartments, allowing for efficient conversion back to its original use
- Strong submarket performance evidenced by lack of competing new buildings under construction, high occupancy rate for comparable units, and high rent growth3
- Well-located to meet renter demand near major employers and entertainment hubs, including Camden Yards, a 45,971-seat Major League Baseball stadium (0.7 miles from the property), the University of Maryland Medical Center (0.8 miles from the property), and Johns Hopkins University (3 miles from the property)
- Acquiring at what the Co-Managers believe is an attractive basis, lower than replacement cost for local high-rise multifamily product
Why Hotel-to-Multifamily Conversions?
To read more about Hotel-to-Multifamily conversions, click here.
3 Downtown Baltimore Submarket , Class B Multifamily, CoStar Analytics, Q1 2022