$5,000,000 Refinance in Santa Rosa, CA
Commercial Refinance Loan:
$5M Hotel Financing Success Story in Santa Rosa, CA
Loan Amount: $5,000,000
Loan Term: 24 Months
LTV: Sub 50%
Lien Position: 1st Deed of Trust
When a seasoned investor faced an impending loan maturity on their 135 room hotel in Santa Rosa, they needed a commercial refinance loan solution that was both swift and strategic. Rubicon Mortgage Fund, LLC provided a $5,000,000 refinance that bridged the gap while the borrower waited for optimal market conditions to sell. This case study demonstrates how private lending can deliver flexible financing when traditional banks can’t meet the timeline.
The Property: A Prime Napa Country Hotel Asset
Located in Santa Rosa on 2.59 acres with high visibility from Highway 101, this 135-room hotel represents a compelling investment in California’s wine country hospitality sector. The property features:
- Ascend Collection flag affiliation, providing brand recognition and reservation systems
- Full renovation completed in 2017, ensuring modern amenities and competitive market position
- Strategic location near Sonoma County’s celebrated wineries and downtown Santa Rosa
- Proximity to major retailers and corporate centers, supporting diverse guest demographics
The hotel caters to multiple market segments including corporate travelers, conference and event attendees, and wine country tourists. This diversified revenue base provides stability even in fluctuating market conditions.
The Challenge: Timing and Market Conditions
The borrower’s existing bank loan reached its maturity date at an inopportune moment. While the hotel market continues recovering from the 2020 disruptions, current valuations haven’t fully rebounded to pre-pandemic levels. The property owner, a highly experienced hotel operator and investor, recognized that selling immediately would mean leaving significant value on the table.
The borrower needed a commercial refinance loan with three critical characteristics: speed to close before the maturity deadline, flexible underwriting that recognized the asset’s true value beyond current cash flow, and a term structure that allowed time for market recovery without forcing a premature sale.
The Private Lending Solution: Asset-Based Refinancing
Rubicon Mortgage Fund, LLC structured a 2-year commercial refinance loan of $5,000,000 that addressed all the borrower’s requirements. As a private lender, we brought several advantages that traditional bank financing couldn’t match in this scenario.
Speed of Execution: The borrower required rapid closing to meet their bank loan maturity. Our streamlined underwriting process and decision-making authority allowed us to move quickly without the bureaucratic delays typical of institutional lenders.
Asset-Based Valuation: Rather than relying solely on trailing cash flow metrics that reflected pandemic-impacted performance, we underwrote based on the overall value of the hotel property. The 2017 renovation, prime location, brand affiliation, and diversified market position all contributed to our confidence in the asset’s intrinsic worth.
Borrower Experience: The sponsor’s extensive track record as a seasoned hotel operator and investor provided additional comfort. Experience matters in hospitality investments, and this borrower’s proven ability to navigate market cycles was a significant factor in our underwriting.
Why Location Drives Value in This Commercial Refinance Loan
The Santa Rosa location provides multiple competitive advantages that supported our refinancing decision. Highway 101 visibility generates consistent drive-by awareness and ease of access for travelers. The surrounding retail infrastructure attracts business travelers and supports ancillary revenue opportunities.
More importantly, the property sits at the gateway to Napa Valley’s wine industry, one of California’s most enduring tourism draws. Corporate event and conference demand provides midweek occupancy, while wine country visitors fill weekend rooms. This dual market dynamic creates revenue stability that pure leisure or pure business hotels often lack.
Key Takeaways for Commercial Refinance Loan Borrowers
This transaction illustrates several important principles for property owners considering a commercial refinance loan:
Private lenders offer flexibility when timing matters. Banks operate on institutional timelines that may not align with loan maturity deadlines or market opportunities. Private capital can move decisively when speed creates value.
Asset value matters beyond current cash flow. In recovering markets, trailing twelve-month financials don’t tell the complete story. Lenders who understand real estate fundamentals can underwrite based on intrinsic property value, location, and future potential.
Borrower experience influences terms. Seasoned operators with proven track records access better financing options. Your experience managing similar assets through market cycles provides confidence that translates into lending terms.
Bridge financing can preserve value. Sometimes the best decision is waiting for optimal sale conditions rather than accepting current market pricing. A well-structured refinance creates that optionality.
Commercial Refinance Loan Expertise You Can Trust
Rubicon Mortgage Fund, LLC specializes in providing commercial refinance loan solutions for hospitality and commercial real estate investors who need responsive, experienced lending partners. Our asset-based approach, combined with deep understanding of property fundamentals and market cycles, allows us to structure financing that traditional lenders can’t or won’t provide.
Whether you’re facing loan maturity, seeking to capitalize on market timing, or need flexible terms that recognize your property’s true value, our team brings the expertise and capital to execute quickly. Contact Rubicon Mortgage Fund, LLC to discuss how our commercial refinance loan programs can support your investment strategy.
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