NJ Limited Services Hotel
$12,000,000 | Woodbridge, NJ
CHC CAPITAL CLOSES $12,000,000 FOR TWO NEW JERSEY LIMITED SERVICE HOTELS
David Turley, Janet Proscia and Jeffrey Pacailler arranged financing totaling $12,000,000 for a Fairfield Inn & Suites and a Comfort Suites located in Avenel, New Jersey. The 10-year loans were structured with 30-year amortization schedules. The refinance proceeds, which was sized to a 10.25% debt yield and 70% LTV, allowed a significant cash out to the borrower.
The two properties total 191 keys. They were developed by the borrower in 1998 (Comfort Suites) and 2003 (Fairfield Inn). They operate adjacent to one another and share a common entrance drive. The properties are located on Route 1-9 fifteen minutes south of Newark Airport and seven minutes north of the commercial hub of Woodbridge.
“We’re pleased to have successfully executed this refinance,” commented David Turley. “The borrower was able to accomplish dual objectives of locking in an attractive interest rate and monetizing a substantial amount of equity, which can now be deployed into other investments.”
Janet Proscia noted: “This represents our fifth transaction this year with Starwood Mortgage Capital. Our close relationship with their CMBS platform has helped us create value for our clients across multiple transactions.”
Founded in 1897, David Cronheim Mortgage Corporation and its affiliate companies, including Cronheim Hotel Capital, located in Chatham, NJ provide an array of real estate services including debt and equity for investment grade real estate. Through their Channel Real Estate Funds affiliate they have provided mezzanine and equity capital for numerous real estate assets 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.