ReCap Secures $12 Million Construction-to-Perm Loan for Holiday Inn Express in Flushing

FLUSHING, N.Y. - Nov. 5, 2013 - PRLog -- Real Estate Capital of America (ReCap) recently secured a $12 million construction-to-perm loan for Holiday Inn Express in Flushing. The financing enables the client to refinance his previous loan and provides funding for a 45-room expansion.

Johnny Su, COO of ReCap recounts the several challenges the boutique financial services firm had to overcome to make the project possible. “First, construction financing was not as readily available for limited service hotels,” says Su, “and lenders tend to favor hotels near NYC instead of limited service hotels that cater to airport traffics.” Su added that the history of the site was doubtful as the site was previously a Best Western hotel that went into loan default and repositioned as a Holiday Inn Express by new owner and operator. “Third, the expansion plan added uncertainty of cash flow to the business,” adds Su. “The lenders were concerned that construction on site would affect its current business and its booking.”

Despite the challenges, ReCap was able to address each issue by demonstrating the strength of the location of the hotels, the uniqueness of the market, and the need for this type of limited service hotels. The clients’ own expertise of in operating hotels and construction also helped convince lenders.

The client, McSam hotel, has completed the most hotel construction in the NYC market recently and its partners have one of the best management track records for limited service hotels.

Johnny Su, COO, of ReCap, said, “Nothing is easy these days and every loan has its challenges. It takes real skills, experience, and capital market knowledge and connections to navigate in today’s commercial financing market.” He adds, “Survival of the fittest is how the market works.”

Tomer Dicturel, CEO of ReCap, also noted, “ReCap continues to thrive in this difficult market and through our strong relationships with our lenders and capital market, we have continually to deliver and secure the necessary financing to help our client grow and expand.”