Cronheim Hotel Capital closed its second Delta conversion this year by financing the acquisition of a Holiday Inn in Breinigsville, Pa. The property will be reflagged to a Delta by Marriott. It is owned by Allentown Asset Management, an affiliate of Infinity Asset Management.
CHC secured financing of $12.5 million at 75 percent of the sponsor's total cost, including purchase price plus a product improvement plan. The non-recourse floating-rate loan has a three-year term.
The Holiday Inn Breinigsville is located on the west side of Allentown, Pa., in the Lehigh Valley industrial corridor. The 175-key property was built in 1988 and contains 14,000 square feet of meeting space—including a 10,660-square-foot ballroom—which is the largest group meeting space in west Allentown.
The growth of warehousing and manufacturing activity in the vicinity of this property over the past decade, along with a notable increase in the residential population and attendant service businesses, created a strong hospitality demand profile.
Cronheim Hotel Capital and its affiliate, Cronheim Mortgage Corp, provide debt and equity for a wide array of commercial real estate. The principals of CHC have six decades of combined experience in commercial real estate capital markets and have completed more than $8 billion of capital transactions. CHC has closed numerous hotel financings from a range of capital sources, including its insurance company correspondents, for whom they service a portfolio in excess of $2 billion.