Deerwood Real Estate Capital recently closed a loan on a 300-room hotel in northern Indiana. During the ramp-up and stabilization, the owners were seeking a low cost of capital that could bridge the gap until the property was ready for a permanent loan.
The property will see significant increases to its cash flows during the next 12 to 24 months, at which point it will be ready for one of Deerwood’s more stabilized loans.
Deerwood was originally approached with a loan request by the owners of the hotel to refinance the existing debt. Deerwood’s Joe Hercenberg and David Rosenberg negotiated the loan application, and were successful in closing the loan at $4 million higher than the borrower’s original loan request.
