Funding will be utilized to pay off existing debt on two hotel properties
Hackensack, NJ, March 15, 2016 – Silver Arch Capital Partners has completed a $5 million financing secured by two hotels, announced Jeffrey Wolfer, president and CEO of the Hackensack, NJ-based private lender. The funding will be utilized for a discounted payoff (DPO) of existing debt, according to Wolfer.
“The borrower came to us seeking a loan to execute a discounted payoff of the existing financing on the two properties, and conventional banks simply don’t want to provide loans for that purpose without the Borrower providing significant cash equity,” said Wolfer.
“At the same time, the properties are situated in secondary markets, which makes it even more difficult to obtain financing,” he said. “Lenders typically look to provide financing in larger markets, where they feel most comfortable.
“Silver Arch routinely assists borrowers with out-of-the-ordinary situational loans and we are fully prepared for this type of transaction,” adds Wolfer. “DPO’s and properties in secondary markets are right in our wheelhouse.”
The hotel properties operate under the Holiday Inn banner in the Mid-Atlantic region, and are owned by experienced owner/operators. Located in Center City Allentown, PA, the nine-story Holiday Inn includes a total of 224 guest rooms.
“The market has been matching the region’s job growth,” said Wolfer. “The tremendous downtown revitalization of Allentown over the last several years spearheaded by the development of the 10,000-seat PPL Center, will continue to support the hospitality growth in Allentown.”
The second property in the transaction is the Holiday Inn Select Hotel & Conference Center, a 241-room property consisting of a single-story building and attached eight-story tower on 1.75 acres in Lynchburg, VA.
“Lynchburg has traditionally enjoyed steady growth, and the current solid economic outlook enhances long-term economic growth,” said Wolfer. “The area will likely continue to show growth in population, median household income and retail sales—all key drivers for the hospitality industry.”
Silver Arch Capital Partners is a leading nationwide private lender to the commercial real estate market, specializing in bridge loans to owners, investors and developers in need of funding outside the scope of traditional banks and lenders. Formed with the mission to assemble the most highly creative minds in real estate lending under a single banner, the firm recognizes the importance of access to capital in turbulent times. Its partners, who have closed over $2 billion in loans, have the knowledge and insight to guide a borrower through the entire loan process, from initial review through closing.
Drawing from various resources, Silver Arch Capital Partners offers loans from $1 million to $50 million with the flexibility and creativity to review projects of every type — multifamily, office, retail, industrial, hotel and land — and to offer funding for almost every purpose — restructurings, discounted payoffs, purchase of notes and property improvements.