$10,000,000 | Memphis, TN
CHC CAPITAL CLOSES $10,000,000 BRIDGE LOAN FOR HOLIDAY INN MEMPHIS AIRPORT
David Turley, Janet Proscia and Jeffrey Pacailler arranged a one-year bridge loan in the amount of $10,000,000 secured by the Holiday Inn, Memphis, Tennessee. The loan includes two six month extension options.
The Holiday Inn Memphis Airport is a 256-room hotel and convention center located adjacent to Memphis International Airport in Memphis, TN. The property’s 33,000 sq. ft. of meeting, conference and event space is a unique asset: it’s the second-largest meeting space in Memphis.
The borrower acquired the property through the acquisition of a defaulted note from a local bank. While the Property had been operated as a Holiday Inn in the past, the previous owner had lost the flag and was operating it as an independent. The seller was able to gain approval to reinstate the Holiday Inn flag after an extensive PIP, which included upgrades to all guest rooms, the interior atrium lobby, meeting and banquet spaces and the building façade.
The seller closed the hotel for over a year to complete necessary renovations. It reopened in late 2014. Given the closure period and the advance booking window for airport contract business, the borrower needed some additional time to season the hotel before entertaining a permanent loan.
“We’re pleased to have found an interim loan solution for this stabilizing property,” noted David Turley. “The borrower’s management team had to rebuild the hotel’s business after being closed for nearly 18 months. Property value was there and the property’s future was bright. We found a lender who understood the story and was willing to write a short-term, non-recourse loan to give the property time to stabilize.”
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.