Portage, IN

$4,600,000

Hotel

Refinance

06/18/2021
Transaction by
Avatar Financial Group
Avatar, a direct bridge lender, funded a $4.6MM bridge loan secured by a 100-room flagged hotel in Portage, IN - an industrial city very close to Chicago. We had a longstanding relationship with the Sponsor, having previously provided acquisition financing to them in 2012. The loan was paid as agreed upon and refinanced with conventional debt. Amidst the huge reduction in hotel reservations amidst the COVID-19 Pandemic, their conventional loan was placed in special servicing. Avatar stepped in and provided a short-term loan, allowing the borrower to refinance the debt, stabilize the property and perform renovations. The loan-to-value was 65% at initial funding and 58% fully funded as stabilized. The sponsor plans to refinance again once the property is stabilized within the 2-year loan term. This bridge loan was funded in June 2021.