NATIONAL REPORT—Money keeps moving the needle on hoteliers’ plans and a double-deal awaits interested investors in North Dakota.
Aries Conlon Capital has arranged an $8.875-million, non-recourse bridge loan for the refinance and conversion of a select-service hotel at 200 N. Admiral Byrd Rd. near Salt Lake City’s International Airport to a full-service Four Points by Sheraton.
The two-year, interest-only loan includes an option to extend one additional year and was secured on behalf of Boise, ID-based TNB Hotels.
Purchased by TNB Hotels in 2016, the property is being temporarily operated under Choice Hotel’s economy brand, Rodeway Inn. The new loan provides the necessary funds to convert the hotel to the new flag while affording the borrower time to stabilize the property, according to the company.
Aries Conlon Capital Principal/CEO Rushi Shah and Associate Suraj Desai worked on the deal.
“TNB Hotels is an excellent borrower, with a property with substantial potential in a premier location,” said Desai. “Salt Lake City is already one of the top-five hospitality markets in the country and all signs point to continued growth. The airport is ranked among the 50 busiest in the nation and Utah’s world-renowned skiing and other outdoor recreation, busy downtown area, and religious and cultural attractions draw millions of visitors from around the world each year. With the financing we secured and the strength of the market, TNB is well-positioned to complete its renovations, and can look forward to moving to long-term permanent debt in the future.“
Multi-State Hotel Deal
Berkadia, meanwhile, has secured $26.5 million in mortgage financing for a portfolio of hotel properties, including the SpringHill Suites by Marriott San Antonio, the Hotel Indigo Atlanta and the Courtyard by Marriott Jacksonville. Director Adrienne Kautzman of Berkadia’s Phoenix office originated the refinancing loan on behalf of Condor Hospitality Trust Inc., a hotel-focused real estate investment trust.
“Berkadia was excited to work with the team at Condor Hospitality Trust as they continue to deliver for shareholders by strengthening their balance sheet and investment platform,” said Kautzman.
North Dakota Double-Deal Awaits
Paramount Lodging Advisors is offering the fee simple interest in the lender-controlled 172-room Holiday Inn Minot and 66-room Holiday Inn Express Minot in North Dakota.
The hotels are offered for purchase on an individual or portfolio basis at a substantial discount to replacement cost, according to Paramount. The properties have been under receivership since February 2016 and are available unencumbered of management.
According to Paramount, there’s “strong operational upside” with the assets transitioning to a more-traditional owner/operator model and there’s the ability to retain both IHG flags via long-term franchise agreements.
The hotels are proximate major demand generators, including Minot Air Force Base, Minot State University, Scandinavian Heritage Park and the new $275-million Trinity Health medical campus expansion currently under construction. There’s approximately $400 million of committed infrastructure improvements and other public enhancements earmarked for Minot over the next eight years, according to the broker.