Blind Auction? Commercial Real Estate?

Question

I know this board is mainly for SFHs, but wanted to discuss CRE auctions.

There is currently hotel in foreclosure being auctioned off soon. The hotel is being auctioned off. This is essentially a blind auction as in no documentation is provided for due diligence including financials. The property is going to auction for more than $3 million, which is my guess. It will be 30 days to close, but my concern is that there are no lenders out there that will finance a property without financials even if I give a very good personal guarantee.

BTW, the property is worth around $6 million based on the current income it is most likely doing, but there is no information being given. Are there lenders out there that have do no document bridge loans? I know its a stretch, but keep in mind it comes with a full personal guarantee. We also own more than $10 million in existing hotels so this property is much smaller for us.

Wayne Brooks · Answer

@Jimmy Klein Sent you a PM.  Good luck!

Jimmy Klein · Answer

@Chris Winterhalter

Yes, we could pull STAR reports from the system, but I don't think lenders can simply do it based on STAR reports. I know conventional is not possible right now. We have been in discussions with a few bridge lenders, but all require 3 years tax returns and financials, the STAR report is not enough.

We essentially need a quick loan maybe 50% of purchase price, that can close in 30 days with no docs required. Will come with personal guarantees and we don't mind the higher interest rate, but don't know anyone out there that can do this.

Chris Winterhalter · Answer

@Jimmy Klein

I hope all is well on your end!  Is it currently flagged with a major brand?  Lenders can pull from STR for bridge and A&C loans if the brand/hotel submits data.  This at least gives them ADR, RevPar, & occupancy.

I know a few developers that were having luck with GE Capital on conversions and new build projects.  But timeframes might be tough.  Aries Capital does a wonderful job in the major branded space, and they might be able to offer assistance with a bridge loan.  Let me know if you want me to send over some info.