Hyatt Hotel Conversion + 40.8 Mixed Use Acres Under Contract in Duluth, GA
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This investment opportunity involves a $17,500,000 loan request to refinance an existing loan secured by a 143,000-square-foot Class-A office building undergoing an exciting transformation into a boutique Hyatt hotel. Located in Duluth, Georgia.
More importantly, the project also includes 40.8 acres of mixed-use land that the borrower recently rezoned with Gwinnett county for multi-family, townhomes and retail. 30 of the 40+ acres are currently under contract at over $30MM.
The hotel conversion is approximately 60% complete, with the borrower self-funding the construction. Plans for the property feature premium amenities, including a spa, banquet room, speakeasy, nightclub, and rooftop bar, making it a highly attractive asset in a growing market.
Hyatt Hotel Conversion + 40.8 Mixed Use Acres Under Contract in Duluth, GA Details
Structure
- Tax Document
- 1099-INT
- Offering Structure
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BPDNx
SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENTTHIS PROMISSORY NOTE IS SECURED BY THE ISSUER'S PLEDGE OF THE RELEVANT UNDERLYING COLLATERAL LOAN (AS DEFINED BELOW) TO THE LENDER (AS DEFINED BELOW) UNDER THE COLLATERAL SECURITY AGREEMENT AND PROMISSORY NOTE. HOWEVER, EXCEPT TO THE LIMITED EXTENT PROVIDED IN THE PROMISSORY NOTE WITH RESPECT TO THE UNDERLYING COLLATERAL LOAN, THIS NOTE IS NON-RECOURSE TO THE ASSETS, FUNDS AND ACCOUNTS OF YIELDI, LLC (THE "BORROWER", "COMPANY" OR "ISSUER") OR ANY OF ITS AFFILIATES, EMPLOYEES, AGENTS, STOCKHOLDERS, PARENTS, OR SUBSIDIARIES EXCEPT TO THE EXTENT OF THE VALUE OF COLLATERAL LOAN NET PAYMENTS ACTUALLY RECEIVED IN RESPECT OF THE UNDERLYING BORROWER LOAN.
Example Return on Investment
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Investment Amount:
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Why We Like This Opportunity
Hyatt Hotel Conversion + 40.8 Mixed Use Acres Under Contract in Duluth, GA Highlights
This investment opportunity involves a $17,500,000 loan request to refinance an existing loan secured by a 143,000-square-foot Class-A office building undergoing an exciting transformation into a boutique Hyatt hotel. Located in Duluth, Georgia.
More importantly, the project also includes 40.8 acres of mixed-use land that the borrower recently rezoned with Gwinnett county for multi-family, townhomes and retail. 30 of the 40+ acres are currently under contract at over $30MM.
The hotel conversion is approximately 60% complete, with the borrower self-funding the construction. Plans for the property feature premium amenities, including a spa, banquet room, speakeasy, nightclub, and rooftop bar, making it a highly attractive asset in a growing market.
About the Neighborhood
Duluth, situated in Gwinnett County, is one of Georgia’s fastest-growing regions and the second-largest county in Metro Atlanta. This affluent area’s strong population growth, strategic location, and robust commercial development make it highly attractive to investors and end-users. The property’s mixed-use potential—encompassing hospitality, residential, and retail—aligns with regional trends and further enhances its long-term value.
Why We Like this Opportunity
The borrower is a seasoned real estate developer with a significant background in the hospitality sector. As the owner, president, and CEO of a leading hotel management company, the borrower oversees fourteen hotels across major brands and serves on the Board of Directors for a prominent hotel parent organization. With a net worth exceeding $100,000,000, the borrower has strong financial resources and industry expertise. The borrower plans to retain the Hyatt hotel after completion and operate it as part of his growing portfolio.
The borrower has under contract from several reputable developers to purchase parcels of the mixed-use land, totaling over $32 million.
These prospective transactions will generate substantial proceeds to fully repay the loan. With additional LOIs anticipated, the borrower’s exit strategy is strongly supported by credible buyers and steady market demand.
Experienced Borrower
The borrower is a successful real estate investor in high-end real estate industry in Florida. He’s sold multiple Florida homes for over $2M+ and has a high net worth and strong liquidity.
Personal Guarantee
The Loans are personally guaranteed by the borrower, spouse, and all principals in the LLC. Additionally, the Sponsor and/or Guarantor are obligated to contribute monthly payments to maintain a tax and insurance reserve. Failure to adhere to reserve contribution requirements would lead to the triggering of a debt service and operating expense/shortfall guarantee.
Upfront Reserve
The Loan is structured with interest reserve for further protection. 12 months of debt service payments will be collected at closing.What Should I Consider When Investing in Hyatt Hotel Conversion + 40.8 Mixed Use Acres Under Contract in Duluth, GA?
Borrower Risk
The Borrower may not have represented itself accurately. Risk Mitigation- The Originator checks the Borrower's credit history via a third-party credit reporting company. The Borrower has a 700 credit score.
- The Originator considers the underlying asset to be the primary source of security.
- If the Loans are not fully repaid after the Lender has exhausted other sources of repayment, the Borrower has provided a personal guaranty to fulfill any deficiency.
Default Risk
The Borrower may default on his financial obligations. Risk Mitigation- If the Loans are not fully repaid after the Lender has exhausted other sources of repayment, the Sponsor has provided a personal guaranty to fulfill any deficiency.
- In the event of a default, a direction letter signed at closing by the Borrower will be sent redirecting the Tenant to make rent payments into an account controlled by the Originator.
Vacancy Risk
The Tenant may vacate the leased properties. Risk Mitigation- The Tenant is an investment grade rated company with sizable financial resources.
- Under the triple-net leases, the Tenant is under multi-year contract to pay rent with no option to terminate.
- If the Tenant decides not to renew any of the leases or to vacate the leased premises, the Borrower will pay for an appraisal of the property “as vacant” and the borrower will have to provide the additional cash collateral and/or pay down the loan (or any combination in between) within ten days of receipt of the appraisal in order to bring the property back to an LTV.
Investment Summary Of Hyatt Hotel Conversion + 40.8 Mixed Use Acres Under Contract in Duluth, GA
Investors have an opportunity to invest in borrower payment dependent notes, the cash flow of which is dependent on the payment of interest and principal repayment on the Loans. Investors are scheduled to receive an annualized monthly interest payment of Login for details over the Loans' estimated remaining term of 11 Months. Principal is expected to be returned on or before maturity through a refinancing with a traditional bank loan. It is important to note that the Loans are eligible for prepayment, and principal may be repaid prior to the 11 Months estimated remaining term. If the Loans are paid off before maturity, investors are expected to receive at least three months of interest payments in addition to return of principal.
How Do I Get Paid?
This loan had an initial term of 11 Months with an option at Yieldi's discretion to extend. As of January 2, 2025 there are 11 Months remaining. Investors will immediately receive monthly interest payments at an annualized rate of Login for details on the principal balance over the life of the loan. If you invest in this loan in the middle of a month, you will receive a prorated interest payment for your investment for your first investment month and then full monthly payments thereafter. All payments are made automatically via ACH on the 1st of each month and investors all paid by the 10th of the month.
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