Mezzanine Loan

Search documents
Mag Mile Capital Arranges $15.9 Million in Financing for Hampton Inn El Paso, Texas Acquisition
Globenewswireยท 2025-08-13 13:15
Core Insights - Mag Mile Capital successfully arranged $15.9 million in financing for the acquisition of the Hampton Inn El Paso by Nexgen Management, a hotel ownership and management firm based in Dallas [1][4] - The financing package includes a $13.9 million senior CMBS loan and a $2 million mezzanine loan, achieving over 80% loan-to-purchase price leverage [2][4] - The transaction highlights the challenges in securing mezzanine financing in the current market, yet Mag Mile Capital was able to provide competitive terms [3] Financing Details - Total Financing: $15,900,000 [4] - Senior Loan: $13,900,000 [4] - Mezzanine Loan: $2,000,000 [4] - Total Leverage: 80%+ Loan-to-Purchase Price [4] - Term: 5 Years [4] - Rate Type: Fixed Rate [4] Market Positioning - The Texas border market offers unique opportunities, and Nexgen Management's experience in this area made them a suitable candidate for the transaction [3] - Mag Mile Capital's ability to creatively source and structure capital, even in limited market segments, is emphasized [4] - This transaction marks the fourth deal closed with Nexgen Management, totaling over $75 million in closed deals with the client [4] Company Overview - Mag Mile Capital is a boutique commercial real estate mortgage banking firm headquartered in Chicago, specializing in sophisticated financing solutions since 1991 [5] - The firm leverages deep capital markets relationships to deliver tailored solutions across all major asset classes [5]
VICI(VICI) - 2025 Q2 - Earnings Call Transcript
2025-07-31 15:00
Financial Data and Key Metrics Changes - AFFO per share for the quarter was $0.60, an increase of 4.9% compared to $0.57 for the quarter ended June 30, 2024 [21] - The midpoint of the revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024 [9][23] - Total debt is $17.1 billion with a net debt to annualized second quarter adjusted EBITDA of approximately 5.1 times, well within the target leverage range of five to 5.5 times [20] Business Line Data and Key Metrics Changes - VICI's same store NOI growth rate is over five times higher than the average projected rate for net lease REITs [10] - The company is generating earnings growth through a combination of same store earnings growth and new store external growth [9] Market Data and Key Metrics Changes - Las Vegas has experienced a period of normalization after years of record-breaking growth, with higher-end properties still running at over 90% occupancy levels [16] - The lower-end consumer has declined recently, prompting operators of lower-tier properties to adjust strategies to attract budget-conscious visitors [16] Company Strategy and Development Direction - The company emphasizes the importance of dividends in creating value for shareholders, focusing on total return through dividend return and earnings growth [5][6] - VICI is cultivating relationships with best-in-class operating partners and diversifying its portfolio beyond gaming [13][101] - The company is committed to capital markets independence and disciplined cost management to defend dividends and grow earnings [11] Management's Comments on Operating Environment and Future Outlook - Management remains confident in Las Vegas's long-term trajectory despite recent declines in visitation and gross gaming revenue [15] - The company believes that the current moderation in Las Vegas is temporary and that long-term investments will continue to drive growth [18] - Management is optimistic about the potential for new generations of visitors and ongoing capital investments in Las Vegas [18] Other Important Information - The company raised its AFFO guidance for 2025, now expecting between $2.5 billion and $2.52 billion, or between $2.35 and $2.37 per diluted common share [22][23] - VICI has approximately $2.9 billion in total liquidity, allowing for continued investment opportunities [20] Q&A Session Summary Question: What drove the decision to increase your mezzanine loan investment on the 1 Beverly Hills by $150 million? - The increase is part of a larger financing effort for a $6 billion project, with expectations for further commitments as construction financing progresses [26][27] Question: Are you seeing or expecting any fee simple opportunities from these relationships? - There is potential for fee simple opportunities, particularly with partners like Kane and Eldridge, who have diverse investments [28] Question: How have deal discussions been for sale leaseback or other loans recently? - There have been no significant changes in deal discussions, with continued interest across various sectors [31][34] Question: What are your views on iGaming proliferation? - The company monitors iGaming developments closely, recognizing its importance to many tenants' overall credit [35][38] Question: Are there good opportunities for debt investments? - The company is focused on capital allocation and is seeing more credit opportunities than real estate transaction opportunities [42] Question: What are your thoughts on the Caesars Forum Convention Center call option? - The company is assessing the opportunity and has time to evaluate its options regarding the asset [92][94] Question: Which regional markets are you most interested in? - Las Vegas remains the top regional market, with interest in Reno and emerging markets like Virginia [114][115]