Scottsdale, AZ May 10th, 2018: Arriba Capital has recently closed a $4.05 Million, cash-out refinance loan for a 84-key Quality Inn located in Montgomeryville, PA. The limited-recourse financing was secured through a non-bank lender. The loan was leveraged to 60% Loan-to-value and provided a 10-year fixed rate term with a 23-year amortization. From start to finish the loan closed in just under 45 days.
At the start of 2017, the property was converted from a Comfort Inn; an upper midscale hotel, to a Quality Inn; a mid-scale Choice flag. The "down flagging" positioned the property better in the blue-collar market and resulted in a dramatic boost in both occupancy & RevPAR while reducing general operating expenses.
The three-story hotel was constructed in 1991. The facilities and amenities are typical for a Quality Inn hotel, featuring a fitness center, complimentary breakfast area, and guest laundry facilities. Upon closing of the loan, the sponsorship plans on using a portion of the cash-out proceeds to complete a minor PIP.
Montgomeryville, Pennsylvania is located in southeastern Pennsylvania, approximately 30 miles northwest of Downtown Philadelphia. Montgomeryville benefits from its location outside of Philadelphia and within proximity to three major corporate office parks, including Fort Washington Office Park and Willow Grove Office Park. Notable corporate tenants in the market include Johnson & Johnson, Lockheed Martin, Tyco, ADP, McNeil Pharmaceuticals, Janssen Pharmaceuticals, Genesis HealthCare, United Healthcare, Abington Health, Aetna, and TruMark Financial, the third largest credit union in Philadelphia, which recently relocated its headquarters to a 75,000 square-foot Class Aoffice space in the Fort Washington Office Park.