LITTLETON, Colorado—Avatar Monetary Group introduced it offered a $ 5.1 million bridge mortgage secured by Hampton Inn & Suites Denver-Littleton, an 89-suite select-service lodge in Littleton, Colorado.
The 2-year mortgage, structured at 53 % loan-to-value, retired a maturing financial institution mortgage and gave the sponsor time to finalize a brand new Hilton Property Enchancment Plan (PIP) for the asset. The sponsor is a seasoned lodge operator with Hilton and different franchise manufacturers and lately accomplished an identical PIP negotiation on one other lodge. That have supported a marketing strategy targeted much less on operational turnaround than on navigating the model’s capital necessities and positioning the asset for longer-term financing.
In-built 2006 and partially renovated in 2019, the four-story, 58,458-square-foot lodge sits on 2.88 acres inside Ken-Caryl Enterprise Park, simply off Freeway 470 and roughly 24 miles from Denver. The property contains 2,500 sq. toes of assembly area, an indoor pool and spa, a health heart, an out of doors patio, and different visitor facilities, and advantages from its proximity to each main employers and regional leisure locations.
“This mortgage was actually about creating time to make the following capital resolution the suitable method,” mentioned T.R. Hazelrigg IV, president and co-founder of Avatar. “The lodge was already working from a stabilized income base, however the sponsor wanted a fast execution to retire maturing debt and finalize Hilton’s property enchancment plan earlier than bringing within the subsequent spherical of financing. Our mortgage offered that window with out forcing a rushed consequence.”
As soon as the PIP is finalized, the sponsor plans to safe financing for the required enhancements and contribute contemporary fairness to the property, which might retire Avatar’s mortgage in full.
