PROPERTY SITUATION

• The current economic environment precluded a refinance of the Loan at maturity.
• The Borrower went into maturity default in July 2022 as a result of COVID-19, the related closure of the Cayman Islands to travel and the Property’s declining performance.

BCA RESOLUTION

• Brighton Capital Advisors effectively communicated with the special servicer and submitted a modification proposal that led to swift negotiations and a resolution on the Borrower’s behalf in less than 120 days.
• BCA reviewed and analyzed the hotel’s operating data and sponsorship projections, along with the refresh plan and projections, to prepare a comprehensive Loan extension request with terms favorable to both borrower and lender to allow property performance to stabilize post-COVID.
  • The Loan was extended thirty-six months to July 6, 2025, to provide time for necessary capital improvements so the property remains competitive, while simultaneously allowing occupancy and revenue to return to pre-COVID levels to facilitate a refinance of the debt.
  • BCA negotiated a partial deposit of capital improvement reserve funds to be held by the Lender for the Borrower’s capital improvement plan with the balance in the form of a guaranty.
  • BCA examined the loan extension documents to minimize out of pocket fees to be paid by the Borrower, including, but not limited to, legal fees, workout fees, and the costs of 3rd party reports.