QUAKERTOWN, PA — Cronheim Hotel Capital (CHC) has arranged financing totaling $6,230,000 for the Holiday Inn Express located in Quakertown, PA. The loan was placed with a national lender for a securitized execution and offered a 10-year term and 30-year amortization.
The 78-key property was acquired in early 2014 and had just completed a $1.2 million PIP. The renovations updated the common areas and all guest rooms to current Formula Blue standards with the exception of the corridors, which will be completed at a later date.
The Sponsor was seeking to refinance their maturing debt and provide a return of some equity given the low leverage debt they assumed at purchase and the additional equity required to complete the PIP.
Quakertown is a suburb of the Allentown-Bethlehem MSA, which is located in the center of the Lehigh Valley region of Eastern Pennsylvania and is home to more than 800,000 people. The Allentown-Bethlehem metropolitan area is Pennsylvania's third largest metropolitan area.