Trinity Street Capital Partners (TSCP), a full service real estate investment bank, announces the origination of a $6.32MM, 84% loan-to-cost, construction loan for the development of a 92 key, Candlewood Suites, extended stay hotel in Smyrna, Georgia
NEW YORK, NY, September 11, 2018 /24-7PressRelease/ — Trinity Street Capital Partners (TSCP) (www.trinitystreetcp.com), a full service real estate investment bank, announces the origination of a $6.32MM, 84% loan-to-cost, construction facility for the development of a 92 key, Candlewood Suites extended stay hotel in Smyrna, GA. The construction loan was for 84% of cost, had a 2 year term, with a 3 year mini-perm option.
The subject’s improvements will be located within the southeast quadrant of Interstate 75 and Windy Hill Road, which provides excellent local and regional access to Marietta and downtown Atlanta and should attract guests that are looking for a less expensive hotel alternative. A wide variety of demand drivers in the submarket; should make this project a great success such as; Lockheed Martin, who operates an aircraft assembly and maintenance facility, Cobb Galleria Convention Center located in the Galleria office park, the SunTrust Park (the new Atlanta Braves stadium), The Battery an adjacent mixed-use development, which has generated significant hotel demand since it opened 2017 and finally the Atlanta United FC, a Major League Soccer expansion franchise, that began play during the 2017 season.
The Candlewood Suites chain was started in 1995 by Jack Deboer, founder of the Residence Inn and co-founder of the Summerfield Suites chain. The first hotel was built on North Webb Road in Wichita, Kansas and opened in 1996. The brand’s locations are extended-stay hotels focused primarily on rate-sensitive business travelers, also known as corporate transient travelers.
According to senior underwriter at Trinity Street, “access to construction loans, particularly for hospitality properties, has become increasingly difficult to obtain, as we approach the top of the next real estate cycle. There has been an explosion of new hotel development across the country, in addition to a future potential disruptors, such as Airbnb or similar web sites who operate online market places for peer-to-peer, short term lodging. According to several industry experts, there has approximately an 80% drop in bank construction lending, in 2018 versus 2017.”
Trinity Street Capital Partners focuses on non-recourse, high leverage senior & subordinate non-recourse commercial mortgages, construction loans and real estate private equity, with investments starting at $5MM on income producing retail, office, industrial, multifamily, manufactured housing communities, self-storage and hospitality properties, located throughout the fifty states.
For more information about Trinity Street Capital Partners and the services it provides, go to www.trinitystreetcp.com.
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