Younger travelers prefer hotels with smaller rooms, but more amenities.
This urgency to innovate and evolve is typical of special purpose property owners, whose businesses can often be affected by volatility more than other business types.
Los Angeles, CA (PRWEB) June 25, 2015
A June 15th article published by National Real Estate Investor outlined the growing trend of hotels altering their style and services in order to cater to millennials, the fastest growing group of travelers in America. Various chains and individually operated hotels across the country are realizing that, beyond their sheer power as consumers, travelers aged 18 to 34 bring with them a higher level of impact in terms of influence via social media. That by itself may be sufficient motivation to motivate property owners to make new investments. “This urgency to innovate and evolve is typical of special purpose property owners, whose businesses can often be affected by volatility more than other business types,” says First Financial Capital, a Los Angeles based lender with experience financing many hotels and other special purpose, single-tenant properties.
First Financial Capital explains that this volatility encourages businesses based in single tenant buildings (such as hotels, gas stations, car washes, etc.) to be highly competitive when seeking to attract customers. Yet, this same volatility often works against the businesses when they are seeking a commercial real estate loan from banks. When giving a mortgage loan to a business in a special purpose, single tenant property, the risk of a loan default is based entirely on whether or not that single business succeeds. While some banks shy away from this risk, First Financial Capital notes that they are willing to examine other factors and give consideration to borrowers considering a purchase of single-tenant real estate.
About First Financial Capital
As a special-purpose property financier, First Financial Capital has provided over two billion dollars in financing to these types of businesses, and continues to give out high dollar loans to borrowers. According to First Financial Capital, they are fully capitalized, typically providing loans in excess of one million dollars. In fact, they have a minimum lending requirement of 10 million dollars for any businesses seeking a loan outside the state of California. They also state that their loan terms are very attractive for any borrowers who own multiple special-purpose properties, such as hotel or gas station chains. The lender’s one to three year payback periods are often utilized by borrowers who have a steady income stream capable of paying down the loan in a matter of years, but who also need a large amount of liquid capital to quickly close on a prospective property.
Anyone interested in applying for a commercial real estate loan with First Financial Capital can call the lender at (310) 694-5060, or visit them online at http://www.firstfincap.com/ (Broker license number: CA DRE 01523939).