Bloomfield Capital, a national direct lender and equity investor, closed a $7 million senior bridge loan on a limited-service hotel located in southern Illinois.
The flagged hotel was originally built by the sponsors in the mid-2000s as a full-service property. Bloomfield’s bridge loan will fund the conversion of the property to a limited-service flag, which is expected to drive additional demand for the hotel. The property benefits from its location near a division 1 university, a regional hospital and additional business and leisure demand drivers in the market.
“Limited-service hospitality financing continues to be a focus for us,” Jason Jarjosa, partner and managing director at Bloomfield Capital, said. “Banks have pulled back in this sector, and we’re seeing more and more opportunities to provide bridge capital for property improvement plans on well located and relatively new hotel assets such as this.”
Bloomfield quickly underwrote the sponsor’s renovation budget as well as the hotel’s historical and projected operating performance. The sponsor plans to refinance Bloomfield’s bridge loan with a conventional loan upon completion of the required renovations and stabilization of the hotel’s operations.
