$10,000,000 | Burr Ridge, IL
Cronheim Hotel Capital Secures $10,000,000 for the Renovation and Conversion of a Quality Inn into a Crowne Plaza
David Turley, Janet Proscia and Jeffrey Pacailler secured a $10 million loan for the renovation and conversion of the Quality Inn Burr Ridge, IL into a full service Crowne Plaza. The loan represents 80% of the sponsor’s total project cost, which was broadly defined to include the property’s acquisition in 2009, renovations over the past six years and all funds needed for the conversion. This allowed the sponsor to avoid any additional capital investment in connection with the conversion, plus obtain $500,000 of working capital at closing. The hotel will be closed for at least six months during the renovation, so the loan was also structured with a significant interest reserve.
The 3-story hotel contains 122 guest rooms and 8,500 square feet of meeting/event space along with an indoor pool, restaurant, fitness center and business center. The hotel was built in 1969 and has most recently operated under the Quality Inn flag. The sponsor renovated the third floor and the meeting space over the past couple of years. The conversion renovation will involve a full rehab of the 1st and 2nd floor guestrooms, common areas and the building exterior, including a new 2-story glass façade.
Jeffrey Pacailler commented: “This is great example what CHC does best: we leverage our extensive lender relationships/credibility and real estate know-how to craft creative solutions to complex situations. This deal was a tough one but we got it done.”
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.