Chattanooga Doubletree Hotel – Application to Close in 31 Days

Nashville, Tenn. — Grandbridge Real Estate Capital recently originated and closed a $23,000,000 first mortgage loan secured by the Doubletree Hotel in downtown Chattanooga, Tenn. The refinance for Vision Hospitality Group, Inc., was originated by Nashville-based Vice President Carl Bedwell and Assistant Vice President Chris Howe through one of Grandbridge’s CMBS investor relationships. The permanent loan features a 10-year term, 25-year amortization, and a fixed interest rate in the mid-five percent range.

“The transaction went from application to close in 31 days. Multiple legal and underwriting hurdles were successfully navigated in record time by all parties involved. This was largely due to superb coordination between the lender's staff, the borrower and borrower’s counsel, and our team which insisted on very high levels of initial due diligence on all fronts; from the underwriting stage to lender selection, to closing,” explained Bedwell. “Institutional investors have only recently become comfortable with the inclusion of hospitality assets in CMBS issuance; even then, only properties of the highest caliber meet the strict consideration for securitization.”

“While it was a challenge to secure a full leverage hospitality loan in a smaller market, these challenges were mitigated by the superb economic trends we are seeing in Chattanooga and the fact that we were working with a very sophisticated borrower with an excellent product and business model,” said Howe.

According to the CMBS financial reporting firm Trepp, the $23 million loan amount is one of the largest hospitality loans in the Southeast since the return of CMBS.

“The team worked in concert with lender’s due diligence and legal teams seamlessly from day one. The deal was completed in one-third of the time a CMBS transaction usually requires, all while achieving the loan terms that we desired. The timely completion of this deal is demonstrative of true teamwork at its best,” stated Mitch Patel, President and CEO of Vision Hospitality Group, Inc.

The 186-room Doubletree Hotel by Hilton Chattanooga Downtown, a 155,567 square foot property located in the heart of downtown Chattanooga’s Central Business District, offers full-service, upscale accommodations within blocks of the Tennessee River and riverfront attractions, the Tennessee Aquarium, UT Chattanooga, museums, restaurants, shops, and the Convention & Trade Center. In addition to its central location, Doubletree Hotel Chattanooga features many outstanding hotel amenities which include a gift shop, lounge, bistro, coffee bar, outdoor saltwater pool, high-end fitness center and a long list of guest amenities such as flat panel TVs, and complimentary high-speed Internet access. The property underwent an extensive $20 million dollar renovation in October 2008.

About Grandbridge Real Estate Capital LLC

Charlotte, N.C.-based Grandbridge, a subsidiary of Branch Banking and Trust Company (BB&T), has a broad investor base that includes insurance companies, CMBS investors, pension fund advisors, commercial banks and capital markets investors, as well as its proprietary lending platform, BB&T Real Estate Funding. The company is a Fannie Mae DUS (Delegated Underwriting and Servicing) lender, a Freddie Mac program Plus Seller/Servicer and Targeted Affordable Housing lender, and an approved FHA Multifamily Accelerated Processor (MAP) and LEAN healthcare lender.

Grandbridge arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management, as well as real estate brokerage services. Grandbridge has a current servicing portfolio of more than $24 billion and represents approximately 100 capital providers. More information about the company is available at www.gbrecap.com.

About BB&T

As of March 31, 2011, BB&T is one of the largest financial services holding companies in the U.S. with $157 billion in assets and market capitalization of $19.1 billion. Based in Winston-Salem, N.C., the company operates approximately 1,800 financial centers in 12 states and Washington, D.C. More information about BB&T and its full line of products and services is available at www.BBT.com.