$27,720,000 | Hazelton, PA
CHC SECURES $27,720,000 FOR ACQUISITION OF HOTEL PORTFOLIO IN HAZLETON, PA
David Turley, Janet Proscia and Jeffrey Pacailler arranged financing totaling $27,720,000 for the acquisition of a hotel portfolio in Hazleton, PA consisting of a Residence Inn, Fairfield Inn & Suites and Hampton Inn. The 10-year loan was structured with a 30-year amortization schedule and executed via CMBS. The Client, Hamister Hospitality Fund LP, is a sophisticated and experienced hospitality group who is planning to complete significant capital improvements at the Properties to ensure they maintain their dominant position in the market.
Hazleton has benefitted from the strong growth of the Lehigh Valley region in recent years, specifically attracting a number of distribution and manufacturing users to the numerous corporate and industrial parks in the area. Companies with operations in Hazleton include Coca-Cola, American Eagle, Hershey, Office Max, Simmons Bedding, Michaels, AutoZone, General Mills and Amazon.
“The strong flags and growing market made this portfolio an attractive acquisition for our Client”, commented David Turley. “However, there were still some challenges, including working closely with the appraiser to receive credit for – and thus be able to finance – the significant capital improvements planned at the Properties. This is a great example of one of our key differentiators – we identify potential issues in advance and then proactively manage them to make sure the deal executes as advertised. In an acquisition scenario such as this, it becomes especially critical.”