Arriba Capital Closes a $3.1M Commercial Loan For a Quality Inn Hotel in Springfield, IL

SCOTTSDALE, Ariz. - July 20, 2015 - PRLog -- Arriba Capital (Arriba) successfully closed a loan to finance the discounted note payoff for a Quality Inn hotel located in Springfield, IL. This new loan allowed the sponsorship to lock-in attractive long term financing and capitalize on a deep discount being offered by the existing lender. Arriba structured this $3,100,000 loan to include a large renovation budget, which enabled the borrower to complete the necessary capital improvement plan (PIP). The borrower is a privately held, Illinois-based hospitality management company.

Challenge: There were a number of rooms currently offline due to years of deferred maintenance and lack of liquidity to make the necessary renovations. Having these rooms offline affected the overall operating profit of the hotel, which was barely breaking even under the current debt structure. The sponsorship had some credit issues due to downturn in the economy in 2008.  Lastly, the hotel property required major renovations to maintain in good standing with the existing hotel flag.

Solution: Arriba helped structure a complicated discounted payoff from the existing bank whom inherited the loan from a now defunct financial institution.  By structuring this deal and allowing this bank to recapture their cost basis for the loan, it was a win / win for all parties involved. Due to the discounted payoff and new debt structure, the in-place cash-flow and historical cash-flow could now adequately service the debt at a comfortable DSCR ratio. With the historical cash-flow issue resolved, the bank was comfortable lending additional dollars to complete the much needed renovations on the property. The $3,100,000, 25 year fully amortizing loan, was fixed for the first 5 years at 5.5%.

ABOUT ARRIBA CAPITAL

Arriba Capital is a fully integrated financial services company and a brand synonymous with excellence in commercial real estate. Arriba Capital has a diverse and innovative product line to optimize all of your needs, including asset management and various types of debt and equity programs. Our seasoned professionals have worked with hundreds of entrepreneurs, developers and investors by offering insight and analysis for structuring projects, repositioning assets, negotiating payoffs and providing guidance to enable you to achieve successful results in these rigorous capital markets. Arriba Capital focuses on providing financing solutions for transactions across a range of property types anywhere in the U.S. Arriba Capital is headquartered in Scottsdale, Arizona with a regional presence throughout the nation.

For more information please visit our website at http://www.arribacapital.com