Aries/Conlon Capital has arranged a 10-year, fixed rate CMBS permanent loan in the amount of $7.25 million on behalf of Pandey Hotel Corporation to refinance the Four Points by Sheraton located at 600 Cumberland Avenue in West Lafayette, Indiana. The loan features a high loan-to-value and a 25-year amortization. Aries/Conlon Capital CEO Rushi Shah originated the deal.
Less than a mile from Purdue University and adjacent to Purdue Research Park, the borrower purchased the 171-room hotel at a lower than market cost-basis. Pandey brought Aries/Conlon Capital in to secure financing for the loan and to ensure the property did not lose its franchise flag. Aries/Conlon Capital arranged a significantly above-cost basis debt transaction, structured to partially fund a Property Improvement Plan (PIP) at closing. By establishing a PIP reserve the borrower was able to satisfy its franchise flag obligations.
Pandey Hotel Corporation, formed in 2012 as a premier hotel real estate company, owns numerous lodging assets throughout the United States. Pandey Hotel Corporation Chief Financial Officer, John Searby, met Shah and his associate Prabhat Jayara, senior underwriting professional for Aries/Conlon at a networking event and subsequently contacted Aries/Conlon Capital to assist with the refinance of the firm’s recently acquired hotel property.
“Having closed numerous loans and refinancing deals on behalf of investors throughout my career, I was impressed with Aries/Conlon’s ability to navigate the challenges while securing us an advantageous deal,” said Searby.