Motif Hotel on Music Row
Private credit strategy has the potential to generate returns similar to equity investments but with lower leverage and reduced last-dollar risk.
Property Type
Hotel
Investment Type
Credit/Lending
Brand
Independent
Date of Investment
August 2023
Location
Nashville, TN
Keys
133
Units
Square Footage
Loan Type
Loan to Value
69%
Loan to Cost
70%
Total Origination
$42.2MM
Proximity to Demand Drivers
Located in West Nashville on Music Row, considered the heart of Nashville’s entertainment industry. It is also close to Vanderbilt University, Midtown, Downtown and Amazon Nashville Yards Tower.
Unit Size Demand
The average rental size, according to AirDNA is 2.6 bedrooms, and the Hotel is positioned well to accommodate this demand with 44 two-bedroom units and five three-bedroom units. Additionally, the property has connecting rooms, allowing flexibility to increase the room size.
Strong Basis
14 comparable transactions have sold for an estimated average value of $542K/key, representing a 71% premium to loan basis ($317K/key).
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