Cronheim Hotel Capital (CHC) has secured $13.2M from a conventional bank lender to refinance the Comfort Suites and Fairfield Inn & Suites in Woodbridge, NJ. The five-year fixed-rate loan, priced in the low-6 percent range, includes 18 months of interest-only and capitalizes both the conversion of the Comfort Suites to a TownePlace Suites as well as a modest PIP for the Fairfield Inn & Suites.
The hotels are located in Central New Jersey, less than 20 minutes from Newark Liberty International Airport and approximately 40 minutes from New York City. The surrounding area boasts a strong industrial presence, with nearby corporations including Amazon, Merck, Target, Wayfair, Keurig, Snapple, and Blue Apron.
David Turley, president of CHC, said, “This was a thoughtful execution that required balancing near-term construction risk with long-term value creation for a long-time client. The Sponsor has a strong operating track record in the market and saw a clear opportunity to convert an already well-performing Comfort Suites, while completing a PIP and maintaining performance at the Fairfield Inn & Suites. We were able to secure attractive fixed-rate financing with meaningful interest-only to support the business plan and provide flexibility during the renovation period. It’s a good example of how conventional lenders can be very competitive when experienced sponsorship and a clear execution strategy come together.”
