LOS ANGELES — iBorrow, a private commercial real estate lender, has provided a $12 million refinance loan for a 102,850 square-foot, full service hotel in Oklahoma City. The property is currently operating as a Crowne Plaza hotel, but the borrower has been approved to change its affiliation and operate as a Wyndham hotel.
The borrower purchased the hotel in 2016 and has invested $8.1 million of equity into the property to date, with plans to invest an additional $2.5 million over the next twelve months to complete the extensive renovations.
“While the property is not yet stabilized, we like our basis which is significantly below the value of other comparable hotels in the area and below replacement cost,” said iBorrow CEO Brian Good.
“We believe that hotel revenue will materially increase once the renovations are complete. We believe that the Borrower’s experience successfully repositioning other hotels combined with his significant equity investment will motivate him to perform. He has presented us with what we believe to be a very solid and actionable business plan.”
“It was very clear from our research that the success of this project is not reliant on the energy business, and will not be subject to the ebbs and flows of the energy sector. As a result, we were able to put together a win-win structure and effectuate a financing very quickly.”