SITUATION:
A well-located Denver airport hotel went into bankruptcy and foreclosure due to cost overruns during the construction process. The foreclosing lender on the project was not prepared to own the asset outright, though they did want to retain a subordinated debt position in the project after a new hospitality operator acquired the property. Due to a fast-moving timeline, bank financing was not available, and the new operator needed a private capital provider to facilitate the transaction.
SOLUTION:
Bloomfield Capital was retained to provide a Senior Bridge Loan to purchase the property, fund capital improvements and to procure new FF&E for the hotel.
During its evaluation, Bloomfield found the Denver airport submarket to have a booming economy, with a stable hotel occupancy rate, rising daily room rates and strong demand drivers that included the airport, industrial warehouse growth and a large convention hotel. The Denver metro area is one of the fastest-growing in the nation in terms of population and general rent growth.
After the new owner acquired the property, they began revamping the property and started working towards a new business plan for the asset, including a change to the property flag and adding an upscale restaurant. Once completed, the sponsor will refinance the Bloomfield loan with conventional debt and their plan is to own the property as part of a greater hospitality portfolio.
HOW CAN WE HELP YOU?
When you’re faced with these types of uncommon, urgent-to-close situations that require bridge loans between $2-20 million, there’s no one more experienced to handle them than the team at Bloomfield Capital. In the 11 years we’ve been serving the commercial real estate community, we’ve funded nearly $1 billion of these types of complex, time-constrained capital requests. With us, you can have complete confidence that your important project is in experienced, tactical and confident hands.
Bloomfield Capital Contact:
Brent Truscott
Partner
248-745-1700
btruscott@bloomfieldcapital.com
www.bloomfieldcapital.com
