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| Brian Good |
SAGAPONACK, NY – iBorrow, a
nationwide private direct lender for commercial real estate, has provided
financing to a well-known boutique hotel/inn owner and operator to support the
acquisition and renovation of Wainscott Inn, a 30-room boutique inn situated at
3720 Montauk Highway on the east end of Long Island
The financing comes at a time when travel is
ramping back up post-pandemic and
hospitality-sector fundamentals are improving, according to Brian Good,
CEO of iBorrow.
“As people return to traveling, the
hospitality sector is benefitting from the rebound of the effects of the
pandemic,” says Good. “In Q4 2021, hotel occupancies had risen
to 63.2% across the nation from 48.9% one
year prior.
"As a result, hotel
investors are increasingly placing capital in assets like Wainscott Inn, which
is located at a convenient destination for both business and leisure stays.”
iBorrow’s $3.3 million financing of this
asset assists the borrower in adding the property to its portfolio and will
serve as a bridge loan as the sponsor pursues construction permits and city
approvals.
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| Jon Heoing |
“iBorrow has always been a reliable source to assist in funding projects we have invested in over the years,” says Jon Heoing at Atlantic Equity Partners.
“This particular investment shows strong
potential as tourism and travel recover. The financing iBorrow helped to secure
is structured to assist us in executing our business plan of acquiring the
asset and implementing full renovations.”
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| Wainscott Inn, 3720 Montauk Highway on the east end of Long Island |
Lenders are likely to be more open to underwriting hotel transactions as sector fundamentals improve, Good explains.
“While hospitality has been one of the slowest asset classes to rebound from the pandemic, it is anticipated to make a full recovery by 2025," says Good.
"In fact, the year ahead is trending positively, with hotel occupancy rates and revenue per available room (RevPAR) expected to approach 2019 levels. These indicators boost our confidence in the long-term success of this investment.
Contact:
Katie
Haga
(949)
438-6262
khaga@thesmartagency.com
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