Aries Conlon Capital announced that Principal and CEO Rushi Shah has closed on a $12.5 million bridge loan for the Crowne Plaza Chicago-SW Burr Ridge hotel near Midway International Airport.
The 24-month, interest-only loan was arranged on behalf of the borrower, Vega Hospitality Group and features a 63 percent loan-to-value ratio.
The property is located at 300 S. Frontage Road in southwest suburban Burr Ridge, Illinois, the 123-room, three-story hotel was previously a Quality Inn & Suites that had been fully-renovated and then rebranded as the IHG Crowne Plaza Hotels & Resorts, according to a statement. Originally built in 1969, the hotel was closed for more than a year for renovations.
The borrower had brought in professional hotel management company, Chesapeake Hospitality, to manage the now open Crowne Plaza hotel. However, the property’s cash flow was not yet at sufficient levels to cover the total debt, which made refinancing almost impossible, according to a statement.
“Our long-time relationship and deal history with the borrower’s current lender, Access Point Financial, Inc., was integral to making this property financeable,” Shah said in a statement. “We brought a solution to Access Point, and they agreed to reduce the pay-off amount on the existing loan and become a subordinate lender for the held-back portion on the new loan. As a result, the borrower now has the funds to buy him time to execute his business plan. Once the property is stabilized, we will leverage our capital source relationships to refinance the bridge loan to non-recourse permanent debt, enable the borrower to recoup his investment cost as cash out, and take out Access Point at the same time.”
