Case Studies

AP&S Represents Wells Fargo Bank in Successful Financing of 17 Hotel Portfolio

The Challenge:

Drawing upon skill sets from a variety of practice areas, AP&S attorneys guided and counseled Wells Fargo Bank through the process of making an $85 million loan secured by a portfolio of 17 hotel properties located throughout the United States.

The Solution:

AP&S attorneys drafted and negotiated the loan documentation, reviewed the property due diligence materials, reviewed the management and franchise agreements, negotiated comfort letters with franchisors, and drafted and negotiated assignment and consent documents with management companies.

AP&S tax attorneys reviewed the complex REIT structure of the borrower entities and advised Wells Fargo Bank as to the structuring of the loan facility and collateral package. Attorneys from the AP&S real estate practice group were engaged in loan documentation as well as review of title, survey and other property related due diligence matters. Commercial finance attorneys from AP&S were enlisted to assist in loan documentation, preparation of security documents, and review of legal opinions.

In each aspect of the transaction, AP&S attorneys were engaged with some of the largest national law firms in the United States. The borrower engaged one law firm to handle real estate and banking matters and a separate law firm to handle hotel franchise and management agreements. AP&S’ ability to handle all the different aspects of the transaction resulted in increased efficiency for AP&S’ client. AP&S was able to draft and revise documents, review property and authority due diligence, review and negotiate hotel franchise and management related agreements on parallel tracks in an expeditious and prompt manner.

The Result:

The efficiency of AP&S’ attorneys and their approach to the transaction resulted in a successful closing ahead of schedule and significantly reduced the transaction expenses. At the conclusion of the transaction, AP&S was praised for its professionalism, efficiency, teamwork and practical approach to a challenging and complex transaction.

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