Aries/Conlon Capital has arranged a 10-year, fixed-rate commercial-mortgage-backed securities permanent loan in the amount of $7.25 million on behalf of Pandey Hotel Corporation to refinance the Four Points by Sheraton located at 600 Cumberland Avenue in West Lafayette, Ind., according to a news release. The loan features a high loan-to-value and a 25-year amortization. Aries/Conlon Capital CEO Rushi Shah originated the deal.
Less than a mile from Purdue University and adjacent to Purdue Research Park, the borrower purchased the 171-room hotel at a lower than market cost-basis. Pandey brought Aries/Conlon Capital in to secure financing for the loan and to ensure the property did not lose its franchise flag. Aries/Conlon Capital arranged a significantly above-cost basis debt transaction, structured to partially fund a property improvement plan at closing. By establishing a property improvement plan reserve, the borrower was able to satisfy its franchise flag obligations.
Pandey Hotel Corporation, formed in 2012, owns numerous lodging assets throughout the United States.
“Having closed numerous loans and refinancing deals on behalf of investors throughout my career, I was impressed with Aries/Conlon’s ability to navigate the challenges while securing us an advantageous deal,” John Searby, Pandey's CFO, said in a statement.