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Structured Financing for Real Estate

Development plans also call for a free-standing restaurant to be built on a parcel of land adjacent to the River Terrace Inn. Combined, the hotel and restaurant feature 300 feet of frontage on the Napa River, and are within walking distance from The Wine Train Depot and Copia: The American Center for Food, Wine and the Arts.

"We were impressed with Gustin’s development plans for the River Terrace Inn and their commitment to deliver a truly exceptional hotel product," said Mike Jaynes, a senior vice president with Hall Financial Group. "Napa is currently underserved with hospitality offerings, providing only 3,000 hotel rooms for more than five million visitors coming to the Valley each year."

Amenities at the River Terrace Inn will include a business service center, exercise facility, boardroom, pool and spa. The hotel’s oversized guestrooms feature high-speed Internet access with furniture and fixtures reflective of the unique Napa Valley area.

"Hall Financial’s real estate and financial experts facilitated our lending process. Their knowledgeable team members understood every aspect of our real estate development plans," said Robert Gustin, managing member of Gustin Property Group LLC.

"This is a quality development project but adequate primary financing was unavailable due to the still weak hospitality sector," said Donald Braun, president of Hall Financial Group. "We were able to work with Gustin looking past current market conditions and forward to see the hotel’s long-term potential."

The River Terrace Inn was designed by TWM Architects of San Rafael in association with Bottomley Design & Planning, a consulting architect for the City of Napa. Andrews & Thornley of Napa was chosen general contractor.

Funding the River Terrace Inn underscores a long-term commitment to the Napa, Calif. region by Hall Financial Group chairman Craig Hall and his wife, Kathryn Hall, the former U.S. Ambassador to Austria.

Kathryn Hall Vineyards
Craig and Kathryn Hall own Kathryn Hall Vineyards, a small Napa Valley winery specializing in very limited production Napa Valley Cabernet Sauvignon made from the Halls’ Sacrashe Vineyard. This highly regarded vineyard on the eastern hillside of the Napa Valley is ideally suited to growing world-class Cabernet Sauvignon, and for nearly two decades top Napa wineries such as Silver Oak, Duckhorn and Cakebread have purchased its grapes. The 1999 Kathryn Hall Vineyards Cabernet Sauvignon is the winery’s first national release and will be introduced in early 2003. Mike Reynolds, former Stonestreet Winery general manager, is the winemaker and general manager of Kathryn Hall Vineyards.

Kathryn Hall Vineyards also recently announced the acquisition of 230 acres of prime Napa Valley land near the Silverado Trail and Big Ranch Road. The property was purchased for $8.5 million and includes 185 acres of planted vineyards.

Hall Financial Group's 2002 Hospitality Sector Transactions
The River Terrace Inn is the latest in a series of financial transactions announced by Hall Financial Group this year. The Company has funded both operational enhancements and new construction through first lien, mezzanine and preferred equity arrangements. They include: Providing $2.25 million in preferred equity to Presidio Hotel Napa, LLC to build the 80-room Hilton Garden Inn in Napa, Calif.; which opened in September at 3585 Solano Ave.; Supplying a $1.75 million mezzanine loan to an entity of Focus Development to redevelop a historic office building in Ba