iBorrow,a nationwide private direct lender for commercial real estate, has provided financing to a well-known boutique hotel/inn owner and operator to support the acquisition and renovation of Wainscott Inn, a 30-room boutique inn situated on the east end of Long Island in Sagaponack, New York.
The financing comes at a time when travel is ramping back up post-pandemic and hospitality-sector fundamentals are improving, according to Brian Good, CEO of iBorrow.
“As people return to traveling, the hospitality sector is benefitting from the rebound of the effects of the pandemic,” says Good. “In Q4 2021, hotel occupancies had risen to 63.2% across the nation from 48.9% one year prior. As a result, hotel investors are increasingly placing capital in assets like Wainscott Inn, which is located at a convenient destination for both business and leisure stays.”
iBorrow’s $3.3 million financing of this asset assists the borrower in adding the property to its portfolio and will serve as a bridge loan as the sponsor pursues construction permits and city approvals.
“iBorrow has always been a reliable source to assist in funding projects we have invested in over the years,” says Jon Heoing at Atlantic Equity Partners. “This particular investment shows strong potential as tourism and travel recover. The financing iBorrow helped to secure is structured to assist us in executing our business plan of acquiring the asset and implementing full renovations.”
Lenders are likely to be more open to underwriting hotel transactions as sector fundamentals improve, Good explains.
“While hospitality has been one of the slowest asset classes to rebound from the pandemic, it is anticipated to make a full recovery by 2025. In fact, the year ahead is trending positively, with hotel occupancy rates and revenue per available room (RevPAR) expected to approach 2019 levels,” says Good. “These indicators boost our confidence in the long-term success of this investment.”
Wainscott Inn is located at 3720 Montauk Hwy in Sagaponack, New York.