Hotels in New York, Pennsylvania and New Mexico have received financing as the hospitality market continues its positive climb back from the pandemic.
iBorrow provides financing for Hamptons boutique hotel
iBorrow, a nationwide private direct lender for commercial real estate, has provided financing to Atlantic Equity Partners to support the acquisition and renovation of Wainscott Inn, a 30-room boutique inn on the east end of Long Island in Sagaponack, NY.
The financing comes at a time when travel is ramping back up post-pandemic and hospitality-sector fundamentals are improving, according to Brian Good, CEO, iBorrow. “As people return to traveling, the hospitality sector is benefiting from the rebound of the effects of the pandemic,” he said. “In Q4 2021, hotel occupancies had risen to 63.2% across the nation from 48.9% one year prior. As a result, hotel investors are increasingly placing capital in assets like Wainscott Inn, which is located at a convenient destination for both business and leisure stays.”
iBorrow’s $3.3 million financing of this asset assists the borrower in adding the property to its portfolio and will serve as a bridge loan as the sponsor pursues construction permits and city approvals.
“iBorrow has always been a reliable source to assist in funding projects we have invested in over the years,” said Jonathan Hoenig, managing partner, Atlantic Equity Partners. “This particular investment shows strong potential as tourism and travel recover. The financing iBorrow helped to secure is structured to assist us in executing our business plan of acquiring the asset and implementing full renovations.”
Square Mile Capital provides $56M loan for Philadelphia hotel
Square Mile Capital Management LLC has originated a $56.3 million loan secured by Sofitel Philadelphia, a 306-key hotel in Philadelphia.
Square Mile Capital provided the acquisition financing to a joint venture between funds managed by Oaktree Capital Management LP and Clearview Hotel Capital. The financing was arranged by Mark Fisher and Ryan Ade of JLL.
Harris Neuberg, principal, Square Mile Capital said, “The hospitality sector continues to demonstrate strong fundamental performance rebounding from the impacts of COVID-19, and Sofitel Philadelphia is a perfect example. Clearview and Oaktree are not only highly experienced in the sector, but within the Philadelphia market, and we are excited about building on our existing relationships with both firms.”
The property is in the Rittenhouse Square submarket of Philadelphia, adjacent to Philly’s central business district. Square Mile Capital continues to be active in financing hotels across the country and has been involved with transactions totaling over $650 million of hospitality lending so far this year.
PMZ Realty Capital arranges acquisition financing for Holiday Inn & Suites Albuquerque
PMZ Realty Capital LLC, a national boutique real estate investment banking firm, arranged acquisition financing for the Holiday Inn & Suites Albuquerque Airport located in Albuquerque, NM.
The $9 million acquisition loan was provided by a life insurance company and will allow the owner to complete the acquisition and a $3.5 million property improvement plan on the hotel.
“With the volatility of interest rates in today’s market, we looked at many different types of lenders to find an attractive deal with favorable terms,” said Peter Berk, president, PMZ Realty Capital. “Ultimately, we identified a life insurance company.”
The four-story 121-room Holiday Inn & Suites Albuquerque Airport is located near the Albuquerque International Support Airport, Albuquerque Convention Center, University of New Mexico and Sandia Labs. Each guestroom comes equipped with flat-screen TVs, a work desk with lamp, microwave, fridge and complimentary high-speed WiFi. The hotel features a complimentary airport shuttle, 24-hour on-site business center and a fitness center with an indoor heated pool.