Mag Mile Capital Arranges $15.9 Million in Financing for Hampton Inn El Paso, Texas Acquisition

Rhea-AI Summary

Mag Mile Capital (MMCP) has successfully arranged $15.9 million in financing for the Hampton Inn El Paso acquisition. The financing package includes a $13.9 million senior CMBS loan and a $2 million mezzanine loan, providing over 80% loan-to-purchase price leverage.

The five-year, fixed-rate structure was arranged for Nexgen Management, a Dallas-based hotel management firm, marking their fourth deal with Mag Mile Capital, bringing their total closed deals to $75 million. The transaction demonstrates Mag Mile's ability to structure creative financing solutions in the challenging Texas border market.

Positive

• Achieved high leverage of over 80% loan-to-purchase price
• Successfully secured rare small mezzanine loan behind CMBS financing
• Represents 4th successful deal with repeat client, totaling $75 million in closings
• Five-year fixed-rate structure provides long-term stability

Negative

• Challenging market conditions for securing mezzanine financing
• Border market location presents unique operational challenges

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Chicago, Illinois, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Mag Mile Capital is pleased to announce the successful arrangement of $15.9 million in total financing for the acquisition of the Hampton Inn El Paso, located at 6635 Gateway Blvd W, El Paso, Texas. The transaction was arranged on behalf of Nexgen Management, a Dallas-based hotel ownership and management firm with extensive expertise in the Texas border market.

The financing package consisted of a $13.9 million senior CMBS loan and a $2 million mezzanine loan, representing over 80% loan-to-purchase price leverage. The five-year, fixed-rate structure provides the Sponsor with long-term stability while maximizing proceeds.

This transaction was originated by Michael Taylor, Vice President of Originations, and Prabhat Jayara, Vice President of Originations, at Mag Mile Capital.

“Finding a small mezzanine piece that is willing go behind a CMBS loan in today’s market is challenging, but we were able to deliver competitive terms that met the Sponsor’s needs,” said Michael Taylor. “The combination of senior CMBS and mezzanine debt allowed Nexgen Management to achieve high leverage for this acquisition. This is a clear differentiator in this market.”

Prabhat Jayara added: “The Texas border market presents unique opportunities, and our client’s experience in operating hotels in this environment made them a strong fit for this transaction. We’re proud to have executed a structure that maximized leverage while maintaining favorable terms for our repeat client.

Rushi Shah, CEO of Mag Mile Capital, commented: “This deal demonstrates our ability to source and structure capital creatively, even in segments of the market where availability is limited. By pairing CMBS with mezzanine financing, we delivered a high-leverage solution that positions Nexgen Management for success in their latest acquisition. We take pride in our ability to execute consistently for commercial real estate owners as this marks our 4^th deal closing for our repeat client, crossing $75 Million in closed deals with the same client.”

Transaction Snapshot
Deal: Hampton Inn El Paso Acquisition
Location: 6635 Gateway Blvd W, El Paso, Texas 79925
Asset Type: Hotel
Financing Type: Senior CMBS Loan + Mezzanine Loan
Total Financing: $15,900,000
Senior Loan: $13,900,000
Mezzanine Loan: $2,000,000
Total Leverage: 80%+ Loan-to-Purchase Price
Term: 5 Years
Rate Type: Fixed Rate
Sponsor: Nexgen Management (Dallas, TX)
Originators: Michael Taylor, Prabhat Jayara
Unique Aspects: Small mezzanine loan availability; border-market expertise

About Mag Mile Capital

Mag Mile Capital is a boutique, full-service commercial real estate mortgage banking firm headquartered in Chicago, with offices nationwide. Since 1991, the firm has specialized in arranging sophisticated financing solutions—spanning bridge, mezzanine, permanent, and equity structures—across all major asset classes. Leveraging deep capital markets relationships and a nationwide platform, Mag Mile Capital delivers tailored solutions that turn relationships into closings. Turning Relationships into Closings Since 1991.

Contact
Rushi Shah
CEO, Mag Mile Capital
Phone: (312) 896-8820
Email: rushi@magmilecapital.com
Website: www.magmilecapital.com

FAQ

What is the total financing amount arranged by Mag Mile Capital for Hampton Inn El Paso?

Mag Mile Capital arranged $15.9 million in total financing, consisting of a $13.9 million senior CMBS loan and a $2 million mezzanine loan.

What is the loan-to-purchase price ratio for the Hampton Inn El Paso acquisition?

The financing package provides over 80% loan-to-purchase price leverage.

Where is the Hampton Inn property located in El Paso?

The Hampton Inn is located at 6635 Gateway Blvd W, El Paso, Texas.

What are the terms of the financing arrangement for Hampton Inn El Paso?

The financing features a five-year, fixed-rate structure combining senior CMBS and mezzanine debt.

How many deals has Mag Mile Capital closed with Nexgen Management?

This marks the 4th deal closing with Nexgen Management, with total closed deals reaching $75 million.