US: Mission Capital Advisors Debt and Equity Finance Group have arranged financing for the acquisition of two hotels in Winston-Salem, North Carolina.
The $19.25 million in non-recourse, floating-rate financing was arranged by the team of Beau Williams, Steven Buchwald, and Lexington Henn, representing the sponsor, a partnership of Milestone Companies and Woodmont Lodging.
The properties are a 91-key Home2 Suites by Hilton and a 95-key SpringHill Suites by Marriott. The properties are located at 1010 Marriott Crossing Way and 1015 Marriott Crossing Way, respectively.
“Despite the fact that the Home2 Suites just recently opened and had limited operating history, we were able to create significant competition among our network of lenders, who were attracted to the strength of the sponsor and the projected debt yield,” said Williams. “The hotels’ close proximity to one another will enable the sponsor to limit operating expenses, while the two properties will benefit from being part of the Marriott and Hilton reservations systems. With these factors at play, we received strong interest from capital providers and closed a very strong deal for the borrower.”
The hotels are situated just off of I-40, seven miles from downtown Winston-Salem and Wake Forest University, and under 30 miles from the Piedmont Triad International Airport.
The SpringHill Suites Winston-Salem, which opened in 2009, underwent substantial improvements in 2017, including a full renovation of its guest rooms, lobby, furniture and fixtures, and a build-out of its ground-floor breakfast area. The Home2 Suites Winston-Salem was completed in February 2018.
