Wyomissing, PA Cronheim Hotel Capital (CHC) has secured $13.065 million from a national credit union syndicate for the refinance and renovation of the Hampton Inn. The five-year fixed-rate loan has no prepay for the entirety of the term, a very attractive feature in a declining interest rate environment.
The hotel is a consistent top performer in the comp set and sits within close proximity to an array of demand drivers, ranging from Fortune 500 companies (Travelers), to major regional healthcare providers (Tower Health), to institutions of higher education (Drexel University Medical School and Penn State University Berks).
David Turley, president of CHC, said, “We financed this hotel for the sponsor when he bought it 10 years ago, so we know the asset and market very well. The initial loan was CMBS but this time the sponsor needed something more flexible to allow him to keep all strategic options on the table over the next couple years. Targeting conventional sources, we covered a wide landscape from local to national lenders, ultimately landing on a credit union syndicate we’ve developed a close relationship with over the years. Procuring a deal with no prepay was a great execution for our sponsor on this.”