Peer case
Debt sized on stressed DSCR survived the rate cap quote
How and who for the hotel job—verified when attested.
Job: Finance a hotel acquisition without borrowing a CIM
Stressed DSCR at close
Verified1.42x
Term sheets compared on identical T12
Verified3
Claim
Acquisition financing sized on stressed T12 DSCR and debt yield rather than broker pro-forma LTV.
Evidence
Executed loan agreement, rate-cap confirmation, and three-lender covenant comparison matrix.
Caveat
A 124-key cash-flowing select-service acquisition; heavy transitional turnarounds require bridge-to-stabilization covenants.
Situation
A buyer sized acquisition debt off broker pro-forma NOI at 68% LTV. Two weeks before exclusivity expired, lender sizing came back constrained by a 1.35x stressed DSCR and a $380k interest-rate cap escrow.
Approach
Redstone Advisory re-sized the capital stack from trailing-twelve night-audit NOI stressed -10% on ADR and +100 bps on debt constant, lining up three regional bank and debt-fund term sheets with explicit FF&E reserve and cash-trap covenants.
Outcome
Closed at 61% LTC on a regional bank execution with a 1.42x stressed DSCR, zero day-one cash trap, and PIP holdback funded on a draw schedule.
“Sizing on debt yield and stressed DSCR up front kept us from retrading the seller at day twenty-eight.”
Who did the work
- 8.2
- 8.9