Silver Arch Capital Partners has completed a $5 million financing secured by two hotels, announced Jeffrey Wolfer, president and CEO of the Hackensack, NJ-based private lender.
The funding will be utilized for a discounted payoff (DPO) of existing debt, according to Wolfer.
“The borrower came to us seeking a loan to execute a discounted payoff of the existing financing on the two properties, and conventional banks simply don’t want to provide loans for that purpose without the Borrower providing significant cash equity,” said Wolfer.
“At the same time, the properties are situated in secondary markets, which makes it even more difficult to obtain financing,” he said.
“Lenders typically look to provide financing in larger markets, where they feel most comfortable. Silver Arch routinely assists borrowers with out-of-the-ordinary situational loans and we are fully prepared for this type of transaction,” added Wolfer.
“DPO’s and properties in secondary markets are right in our wheelhouse.”
The hotel properties operate under the Holiday Inn banner in the Mid-Atlantic region, and are owned by experienced owner/operators. Located in Center City Allentown, PA, the nine-story Holiday Inn includes a total of 224 guest rooms.
“The market has been matching the region’s job growth,” said Wolfer.
“The tremendous downtown revitalization of Allentown over the last several years spearheaded by the development of the 10,000-seat PPL Center, will continue to support the hospitality growth in Allentown.”