$13,000,000 | Murfreesboro, TN
CRONHEIM HOTEL CAPITAL SECURES $13,000,000 FOR RESIDENCE INN MURFREESBORO, TN
David Turley, Janet Proscia and Jeffrey Pacailler arranged financing totaling $13,000,000 for the Residence Inn Nashville Southeast Murfreesboro, approximately 30 miles southeast of downtown Nashville. The 10-year loan was structured with a 30-year amortization schedule and executed via CMBS. Although the property was only opened in 2015, the proceeds represented a cash out above the Borrower’s cost basis.
Murfreesboro is a strong growth corridor of the Nashville metro and is one of the fastest growing cities in the country. Nearby demand generators include Middle Tennessee State University, Saint Thomas Rutherford Hospital and Nissan’s 5.9 million sq. ft. automobile and battery production facility. Other large corporations nearby include Dell, Bridgestone, State Farm and General Mills.
“The quality of the property and the location was very attractive to a number of lenders”, commented David Turley. “However, there were still some significant hurdles to overcome. Cashing out the Borrower over their cost basis with just a year of operating history and new supply coming into the market gave a lot of lenders pause. We worked hard to understand the market and quantify the risk in order to successfully close this transaction.”