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Woodbridge Residence Inn

$13,500,000  |  Woodbridge, NJ

 

Background:

Local developer client opened a new Residence Inn in Oct 2012 a few days before Superstorm Sandy. With interest rate increases on the horizon, he wanted to lock in a fixed-rate permanent loan before stabilization.

 

Challenges:

  • Hotel had only 6 months of operating history at Loan Commitment and only 8 months at closing.

  • Superstorm Sandy temporarily improved business, but also created uncertainty regarding the strength of long-term demand.

  • Real estate taxes were partially assessed at closing.

Solution:

  • CHC introduced a life insurance company with an appetite for Marriott extended-stay product.

  • CHC showed evidence for long-term demand and property valuation trends while explaining the signicant value of the Residence Inn flag in a high barrier-to-entry market.

Outcome:

CHC placed closed a non-recourse loan with one of Cronheim Mortgage’s insurance company correspondents for a 10-year, fixed-rate term with a 30-year amortization schedule at 4.63% rate.

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