LQR 2025-CALI, a single-borrower transaction, is preparing to issue $300 million in commercial mortgage-backed securities (CMBS) to investors, backed by fee-simple interests in the La Quinta Resort & Club in La Quinta, Calif.
All the notes, which will be issued from six tranches of classes A, B, C, D, E and F, all of which have a rated final distribution date of January 2043, according to Kroll Bond Rating Agency.
The loan collateralizing the CMBS is a non-recourse, first-lien mortgage with a floating rate, that is expected to have a two-year initial term with three 12-month extension options.
Henderson Park Capital Partners and Pyramid Global Hospitality are sponsoring the loan, which will require monthly interest-only payments based on the one-month Secured Overnight Financing Rate (SOFR), plus an estimated spread of 2.97%, the rating agency said.
KBRA says LQR 2025-CALI has net cash flows of $25,519, a 9.75% capitalization rate, with a $406,419 value per collateral key. The deal has an in-trust loan-to-value ratio of 114.6%, with a debt yield of 8.5%, the rating agency said.
KeyBank will service the loan, with Situs Holdings acting at special servicer, KBRA said.
The class A notes will issue the bulk of the securities, with $102,200, and a KBRA-estimated loan-to-value ratio of 39.0%.
For the trailing 12-month period that ended in October 2025, La Quinta Resort had an occupancy of 59.2%, with an ADR of $390.13, resulting in a revenue per available room $230.83. For the trailing 12-month that ended in September 2025, the property had occupancy, ADR and RevPAR penetration rates of 96.0%, 125.8% and 120.8%.
KBRA assigns AAA, AA- and A- to the class A, B and C notes; and BBB-, BB- and B- to classes D, E and F.
