Business
CMCT Closes $92.2 Million Loan for Sheraton Grand Sacramento Hotel
Financing is Part of Previously Announced Program to Strengthen Balance Sheet and Liquidity DALLAS--(BUSINESS WIRE)-- Creative Media & Community Trust
About this update from Creative Media
[{"type":"text","content":"\nFinancing is Part of Previously Announced Program to Strengthen Balance Sheet and Liquidity\n\n\n DALLAS--(BUSINESS WIRE)--\nCreative Media & Community Trust Corporation (NASDAQ: CMCT and TASE: CMCT) (the “Company”) announced today it has closed a secured, non-recourse loan of up to $92.2 million (the “Sheraton Mortgage Loan”) on its Sheraton Grand Sacramento Hotel and parking garage located at 1230 J Street in downtown Sacramento, California. The Sheraton Mortgage Loan is a floating rate, interest-only loan which matures in December 2026, with three one-year extension options that are subject to customary extension conditions.\n\n\nThe Sheraton Mortgage Loan consists of (a) an $84.3 million closing day advance that was used by the Company to paydown existing debt on its corporate-level credit facility (the balance outstanding on the corporate facility was reduced to approximately $97.3 million from $169.3 million), pay certain of the fees and expenses incurred in connection with the closing of the Sheraton Mortgage Loan, and to fund amounts related to a comprehensive renovation of the Sheraton Grand Sacramento Hotel’s 505 guest rooms and suites (the “Room Renovations”) and (b) a future advance component of up to $7.9 million to fund additional amounts related to the Room Renovations. The Room Renovations were initiated earlier this year and the Company anticipates they will be completed by 2024 year-end.\n\n\nIn 2025, the Company plans to improve and modernize the hotel’s ballroom and meeting space, food and beverage outlets and common areas. These upgrades will primarily be funded from proceeds to be received as part of a recently executed, long-term extension of the Sheraton Grand’s management agreement with Marriott International.\n\n\nThe Company is in the advanced stages of refinancing several additional assets and intends to use part of the proceeds from these property-level refinancings to fully repay and retire its recourse corporate-level credit facility. The Company intends to invest remaining proceeds, along with proceeds from any future potential asset sales, principally in premier multifamily properties as part of its ongoing shift away from traditional office.\n\n\nABOUT CMCT\n\n\nCreative Media & Community Trust Corporation (“CMCT”) is a real estate investment trust that owns, operates and develops premier mult...