On Monday, Creative Media & Community Trust Corporation (CMCT) announced the closure of a secured loan for $92.2 million on its Sheraton Grand Sacramento Hotel and parking garage located at 1230 J St. in downtown Sacramento. The lender’s identity was not disclosed.
The Sheraton mortgage loan is a floating-rate, interest-only loan that will mature in December 2026 and includes three one-year extension options subject to standard conditions.
The total amount of the loan is divided into two parts: an $84.3-million advance made on the closing day which was used to pay off existing debt on CMCT’s corporate-level credit facility, cover fees and expenses related to the closing of the loan, as well as fund renovations for all 505 guest rooms and suites at the hotel; and a future advance component worth up to $7.9 million designated for additional costs associated with room renovations. These renovations began earlier this year with an expected completion date by end of year 2024 according to CMCT.
Connect CRE reported that CMCT has successfully closed a mortgage loan worth $92 million for their Sheraton Grand Sacramento property located at 1230 J St., downtown Sacramento.The borrower remains anonymous.
This floating-rate mortgage has been issued until December 2026 with three one-year extension options available upon meeting customary requirements.
Out of this total amount sanctioned by lenders, an initial payment worth$84million will be utilized towards paying off previous debts incurred through corporate-level credit facilities along with covering other expenses relatedto securing this new financial aid.Additionally,$7million have been allocated towards renovating all505guestroomsand suitesatthehotel.CMTC expects these upgradeswillbe completedbytheendofyear2024as work commencedearlierthisyear itself.
