CHATHAM, NJ—David Turley, Janet Proscia and Jeffrey Pacailler have secured $15.2-million financing for the acquisition of the 142-room Hampton Inn in Wyomissing, PA. The 10-year, non-recourse loan was funded at 79% loan-to-cost and carries a 30-year amortization schedule.
The buyers were Ayer Capital Advisors, an investment firm, and The Wankawala Organization, a hotel owner and management firm. The current portfolio owned and managed by the group includes 10 select-service hotels with a total of more than 1,000 rooms.
Proscia stated, “We are pleased to have delivered a true leveraged financing structured and priced as senior debt. There aren’t a lot of CMBS hotel loans being executed at nearly 80% LTC. We were able to convince a close lender relationship to buy into the market and the thesis that the PIP renovation would materially improve the appeal of an already top-performing asset.”
“This transaction took nearly a year to complete,” added Turley. “We were getting ready to close the loan earlier this year when we discovered that the property’s zoning designation excluded hotel use. The buyer and seller agreed to complete the variance process prior to closing. We put the lender on hold for several months until the zoning was corrected and then closed at full proceeds on an expedited timeframe.”