Richmond Hotel Portfolio
$34,150,000 | Chester & Midlothian, VA
Cronheim Hotel Capital Secures $34,150,000 for Suburban Richmond Hotel Portfolio
David Turley, Janet Proscia and Jeffrey Pacailler secured a $34.15 million loan for the refinance of a Homewood Suites and Courtyard in Chester, VA and Holiday Inn Express in Midlothian, VA. The hotels were financed simultaneously but were not cross-collateralized. The financing was sized to a 72% LTV and 11% debt yield and allowed a significant cash out to the borrower.
The rates were fixed at 4.05%. The borrower had the option, which he opted not to take, of lower proceeds – 65% LTV and 13% debt yield – at a 3.69% rate.
The Brandermill Holiday Inn Express is a newly renovated 2003-vintage, 96-key, 4-story limited-service hotel located in the upscale Richmond community of Midlothian. The Chester Homewood is a 2002-vintage, 118-suite extended stay hotel located adjacent to the Chester Courtyard, a 2002-vintage, 135-key, 5-story select service hotel. The Chester properties are located off I-95 south of Richmond near the growing 1,300-acre Meadowville Technology Park and Fort Lee, an Army quartermaster base.
“This transaction is a great example of what CHC does best,” noted David Turley. “Our client, a major owner/operator, approached us with these attractive refinance opportunities along with a list of priorities that required a customized financing structure. We made it happen by leveraging a close lender relationship to secure a loan with an unusual number of flexibilities at a very low rate.”
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.