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Spring Lake Hampton Inn

$6,000,000  |  Spring Lake, NC

 

Background:

Local owner/operator was seeking a cash-out refinance of a limited service hotel located in a small North Carolina town near Fort Bragg.

 

Challenges:

  • Market and hotel revenues were dominated by Fort Bragg-associated demand.

  • Property revenues dropped after the Loan Application was signed when hotel temporarily lost a key group contract.

  • Loan collateral included two small development sites that client wanted the ability to release from the mortgage at a later date.

Solution:

  • CHC made a case for continuing demand growth from Fort Bragg and sourced a lender willing to get comfortable with the declining revenue.

  • CHC visited the property to see how the outparcels impacted the site and helped borrower and lender create a mechanism for their release.

Outcome:

CHC closed a 10-year non-recourse loan at a sub-5% interest rate.

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