IBC Provides Funding for Mayo

Regional banking leader and commercial lender International Bank of Commerce (IBC Bank)–Oklahoma provided a $23.5 million Senior Secured Credit Facility for construction financing to Presidian Cos. and its partner Mayo Hotel and Lofts LP for the restoration of the $40 million luxury hotel together with upscale residential lofts.
Groundbreaking for the project, which is slated for reopening in late 2009, was held July 1 at the Mayo Hotel, 115 W. Fifth St.
“This project is part of an economic investment in the revitalization of downtown Tulsa and contributes to the fast-paced growth the city is experiencing. IBC Bank is excited to play a role in this unique project that incorporates first-class design, the latest upscale amenities and the best of downtown living,” said Bill Schonacher, IBC Bank’s Tulsa market president. “The hotel has hosted guests from John F. Kennedy to Charlie Chaplin, and we are proud to help bring its beauty and grandeur back for a whole new generation.”
The IBC financing package is structured as a $23.5 million construction/mini perm facility loan with IBC holding the first mortgage on the hotel property, said Andrew Levinson, IBC first vice president and lead commercial banker on the transaction.
“Essentially they have a construction period to get the hotel built and it gives them time to get it stabilizes, and then it will automatically roll into permanent financing,” said Levinson, a member of the Tulsa Business Journal 2007 class of 40 under 40.
The project also benefits from $4.9 million in Vision 2025 funds, and as a property on the National Register of Historic Places, it qualifies for the federal Rehabilitation Tax Credit, he said.
“They had some partners come in and purchase those tax credits,” Levinson said. “That was a huge help for them.”
“It’s a very important project,” he said. “I am a third generation Tulsan. I have been downtown and have seen this building debilitate. It is exciting for me to make this loan.”
The newly restored Mayo Hotel and Lofts will offer 100 luxury hotel rooms and suites. In addition to the hotel, 72 renovated lofts will be available for lease featuring upscale amenities. The renovation to the hotel will also include the restoration of the historic 8,000–SF Crystal Ballroom, as well as updates to the first floor “Grand Hall” that will include the original grand staircase and other historical features. Additionally, the hotel will feature business meeting rooms and a fine dining restaurant with a state-of-the-art banquet kitchen.
IBC Bank-Oklahoma is a member of International Bancshares Corp., an $11 billion multi-bank financial holding company headquartered in Laredo, Texas, with more than 260 facilities and more than 405 ATMs serving 100 communities in Oklahoma and Texas.

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