Most
hotel syndications are undertaken at the commencement of construction to
provide the developer with gap financing that makes hotel projects
possible.
This page provides the necessary due diligence disclosures for a
hotel project that is seeking pre-construction phase project financing:
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Complete incorporation filings on the sponsor entity and developer
entity (if different).
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Copy of all by-laws and/or operating agreements.
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Title.
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Title Insurance.
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Design/Build Pre-Construction Phase Services Agreement.
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Property Management Agreement.
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Property Development Management Agreement.
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Property Franchise Agreement.
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Evidence of Construction Financing (Construction Loan Commitment).
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Evidence of Permanent Financing (Takeout Loan Commitment).
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Approved Development Plat.
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Utility "Will-Serve" Letters.
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Environmental Phase I Report.
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Value Engineering Report.
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Architectural Schematic Phase Design Documents.
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Schematic Phase Outline Construction Specifications.
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Property Surveys (metes & bounds, encroachments and topo).
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Entitlements Agreements (local, state and federal levels).
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Proposed Tenants-In-Common Fractional Ownership Contract
(specimen).
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Market Feasibility Analysis Report.
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Pro Forma Financial Presentation or Financial Feasibility Study.
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Business Plan of Department Operations.
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Capital Funding Proposal.
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Project Staffing Plan.
There may be additional requirements that apply on a case by case
basis.
