TAMPA, FL—Spirides Hospitality Finance Company has successfully arranged and the borrower has officially closed on a $10 million construction to permanent, first priority mortgage loan from a Southeast U.S. headquartered bank to finance the development of a new Holiday Inn Express in Lumberton, North Carolina.
This new 95-guest room, 5-story Holiday Inn Express will be built on 2.2 acres of land located at 302 Wintergreen Drive near Interstate 95 Exit 22 in the City of Lumberton, Robeson County, North Carolina. Hotel amenities will include a breakfast dining area, a meeting room, an indoor swimming pool, an outdoor courtyard, a fitness center, lobby computer workstations for guest use, a market pantry, and a guest laundry room.
Nearby attractions, including corporate office, transportation, healthcare, educational, agricultural, and industrial demand generators, include Interstate 95’s significant daily volume of vehicular traffic, Robeson Community College, Mountain Farms of North Carolina, University of North Carolina at Pembroke, Southeastern Regional Medical Center, Campbell Soup Company, Southeastern North Carolina Agricultural Events Center, Sanderson Farms, PepsiCo, Elkay Southern Corporation, and Contempora Fabrics.
The terms of the financing arranged by Spirides for this new Holiday Inn Express development project include a 27 year term, an 80% loan-to-completed value ratio, interest only monthly mortgage payments for the first 18 months of the loan through the construction period, followed by principal and interest payments based on a 25.5-year amortization schedule for the remainder of the loan term. A floating interest rate will be applicable during the construction period. Afterwards, a fixed rate of interest will apply, and the rate will adjust every three years. Spirides was able to obtain from the lender a “very good” interest rate for the borrower.
“I am very happy to see this loan close after three years of working together with the investor group and assisting them to navigate the many issues that arose during the course of this financing project. A list of the issues overcome includes the unfortunate death of an investor and loan guarantor who was the original project sponsor; finding a qualified architect; replacing the original general contractor due to construction cost issues; negotiations with numerous different lenders to secure the best possible terms and conditions for the borrowing entity; and working with the selected lender, CPAs, and attorneys to ensure the transaction is structured in accordance with all applicable government laws and regulations,” says Harry G. Spirides, President of Spirides Hospitality Finance Company who led the debt placement team representing the borrowing entity in this transaction. “Good old-fashioned perseverance, hard work, connections, and teamwork, facilitated by our company, ultimately led to the optimal lending outcome being achieved,” adds Spirides.
Holiday Inn Express® is IHG’s (InterContinental Hotel Group’s) fastest growing franchised hotel brand. It has operated for over 28 years in the midscale limited-service segment of the lodging industry. With more than 2,826 hotels open and 771 in the development pipeline in 33 countries, the Holiday Inn Express brand has the flexibility to perform well in any location, from an interstate to an airport to an urban center.