Johnson Capital has arranged a $9.5 million loan for a Long Island City hotel at 44-29 9th Street. The loan closed on October 5.
The financing will replace two land and bridge loans on the property, the Wyndham Garden Hotel. It was provided by Texas-based Hall Structured Finance, which earlier provided $21 million for the construction of a 137-key Holiday Inn Hotel—also in Long Island City. Mike Jaynes, president of Hall Structured Finance, told The Mortgage Observer that the company was paid off on that loan early in the year—making the Wyndham its second opportunity.
“We like the story of that area being a low cost alternative to staying in Manhattan—that tied in to the the proximity to the train to get in to Manhattan,” Mr. Jaynes said. “And also the strength overall of the Long Island City Hotel Market.”
Hall Structured Finance’s loan is interest only, for a three-year term and at a floating interest rate.
“Due to the limited operating history of the property, our focus was on finding a lender who could understand the strength of the property and the market,” said Daniel Lisser, a Johnson Capital managing director who, along with Better Commercial Mortgage, jointly arranged the financing. “In the end, we ended up with a lender that understood the market and the intrinsic value of the property, even with the limited operating history.”
The seven-story hotel was developed by a Queens developer and opened in May 2012.