Across the nation the Hospitality industry is healthy with strong acquisition and ground-up construction opportunities all around. In fact, we are currently processing several hotel loans and expect to close at least four of these (totaling over $19 million) in the next 45 days for flagged properties in Illinois, Ohio and Michigan. More details as we close them, but right now, we are excited to announce our most recently closed deal…
Fountainhead is proud to announce the closing of a $4,619,750 hotel loan for BDS Hotel Investments Inc. Our SBA 504 loan was used to acquire a 118-unit Country Inn & Suites located in Jacksonville, FL right off of I-95. We provided the $2,717,500 1st mortgage and the $1,902,250 interim 2nd mortgage as part of this SBA 504 project, allowing the borrower to acquire this hotel with attractive, long-term fixed interest rates at 85% loan-to-cost financing.
The subject hotel is well situated off I-95 in Jacksonville, has a favorable rating on hotels.com and with business travel and tourism in Florida projected to increase, there is great opportunity for business growth for the new owners. To further enhance the property and take advantage of this growth potential, the new owner will complete substantial renovations with funds made available as part of our loan proceeds.
The Fountainhead Team enjoyed working with Mr. Kulwant Bal, the owner of BDS Hotel Investments, Inc., and wish he and his family much success not just in the operations of this new hotel investment, but of another hotel they operate in Tifton, Ga.
We hope you are enjoying the beginning of Summer and have made fun plans with your family for the upcoming July 4th holiday weekend. We might take a short break ourselves 🙂 but we are very busy assisting owners of small businesses, such as Mr. Bal, create wealth by acquiring commercial real estate using our SBA 504 loan program.