GLENDALE, AZ—Avana Capital has provided a $19-million loan to fund the construction of a Hilton Garden Inn hotel in Lynnwood, WA. The hotel, located near the Lynnwood Convention Center, will be the city’s first new hotel in five years.
Developer Nick Patel and his management company Kalyan Hospitality own 10 hotels in Virginia and two hotels in Washington state. “We believe the expanding retail and service corridor along with the convention center present a growth opportunity,” Patel said. “Lynnwood is an up-and-coming area that needs a new, contemporary-style hotel to target the millennial market, corporate travelers and young families.”
Set on two acres, the Lynnwood Hilton will be a full-service hotel with 155 rooms and a casual dining restaurant seating 66. It will also have a fitness center, an indoor swimming pool, a terrace area, a business center, meeting rooms and a boardroom.
Patel worked with Avana Capital through the Small Business Administration (SBA). The commercial real estate lender was able to fund the hotel at 75% loan to value. By requiring less upfront capital, Patel has liquidity that will allow for future growth of this hotel or possibly the development of additional properties, he said.
Construction on the Lynnwood Hilton Garden Inn began in March 2017 and target completion is June 2018. The project will create more than 100 construction jobs and 25 permanent jobs once the hotel opens, according to the company. Once it opens, the hotel will pay an estimated $546,630 in lodging sales tax.