$15,200,000 | Wyomissing, PA
Cronheim Hotel Capital Secures $15,200,000 Financing for Hampton Inn Acquisition
David Turley, Janet Proscia and Jeffrey Pacailler have secured $15.2 million financing for the acquisition of the 142-room Hampton Inn in Wyomissing, PA. The 10-year, non-recourse loan was funded at 79% loan-to-cost and carries a 30-year amortization schedule.
The buyers were Ayer Capital Advisors, an investment firm, and The Wankawala Organization, a hotel owner and management firm. The current portfolio owned and managed by the group includes ten select service hotels with a total of over 1,000 rooms.
Mihir Wankawala, Managing Director of The Wankawala Organization, praised CHC’s efforts on this transaction. “These guys are pros. They found us a great deal, controlled the process and, importantly, closed in a very expedited timeframe when we gave them the green light.”
Janet Proscia commented: “We are pleased to have delivered a true leveraged financing structured and priced as senior debt. There aren’t a lot of CMBS hotel loans being executed at nearly 80% LTC. We were able to convince a close lender relationship to buy into the market and the thesis that the PIP renovation would materially improve the appeal of an already top-performing asset.”
“This transaction took nearly a year to complete,” added David Turley. “We were getting ready to close the loan earlier this year when we discovered that the property’s zoning designation excluded hotel use. The buyer and seller agreed to complete the variance process prior to closing. We put the lender on hold for several months until the zoning was corrected and then closed at full proceeds on an expedited timeframe.”
Founded in 1897, David Cronheim Mortgage Corporation and its affiliate companies, including Cronheim Hotel Capital, provide debt and equity capital for a wide spectrum of commercial real estate assets. Through their Channel Real Estate Funds affiliate they have provided equity capital for numerous real estate investments in an efficient and cost effective manner. Cronheim Mortgage maintains correspondent and/or servicing relationships with twelve institutional investors, mostly insurance companies, and currently services $2,000,000,000 of debt. The company and its insurance company correspondents have substantial debt and equity capital to invest in quality real estate at pricing below alternative sources, especially for long-term debt.