$13,750,000 | Greenbelt, MD
Cronheim Hotel Capital Secures $13,750,000 Insurance Company Financing for Hilton Garden Inn
David Turley, Janet Proscia and Jeffrey Pacailler recently secured a $13.75 million loan for a Hilton Garden Inn located in a Maryland suburb of Washington D.C. within the Capital Beltway. The fixed loan was placed with one of CHC’s insurance company correspondents, for whom CHC will also provide servicing. The loan is a fully-amortizing 20-year fixed-rate financing.
The Hilton Garden Inn was built in May 2006 and offers 155 guest rooms. It is situated just off the Capital Beltway with convenient access to the Baltimore Washington Parkway. The University of Maryland, Goddard Space Center and several FDA and USDA facilities are in close proximity to the Property.
CHC successfully obtained a loan for the Property on a 20/20. The interest rate was locked in the mid-4%’s, allowing the Borrower to secure today’s historically low rates with fully amortizing, long-term financing. In addition, the balance sheet nature of the lender allowed for flexibility not found in alternative financing options.
David Turley commented: “Given the long term nature of this financing, the key was understanding the durability of the demand drivers in the market and the underlying value of the real estate. The cyclical nature of the Washington D.C. market and the recent road bumps in government operations presented challenges but with diligent research, CHC was able to present compelling evidence that the Property was a top performer in an area with high barriers to entry.”
“Our insurance company correspondents rely on us to bring them high quality transactions.” added Janet Proscia. “We’ve recently financed, and continue to service, a significant volume of loans with our correspondents and have a strong understanding of their process methodology and criteria when evaluating properties. Compared to alternative financing options, this type of money is in limited supply and we are thrilled to have found it for the Borrower. Needless to say, everyone is very happy with the outcome.”
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.