Stonehill Originates $80M Bridge Loan for Extended Stay Hotels Purchase
Churchwick Partners has landed $79.8 million of bridge financing for the acquisition and recapitalization of 12 extended-stay hotel properties, Commercial Observer has learned.
Stonehill originated the three-year, floating-rate loan for Churchwick’s extended-stay portfolio consisting of 1,432 rooms. Churchwick’s deal was executed in partnership with David Kaye and Joe Listhaus of Rockledge.
“With funding options from traditional lenders limited for hotels and other commercial real estate properties, we are pleased to provide Churchwick Partners with the lending solution, financial capacity and hospitality expertise to close this transaction in a challenging capital market environment,” Nick Baer, Stonehill’s vice president of business development, said in a statement.
Baer added that extended-stay hotels have shown the most “strength” throughout the COVID-19 pandemic with the highest performance results of the entire lodging sector.
The Churchwick Partners portfolio includes a 158-room Sonesta ES Suites Cleveland Airport in Middleburg Heights, Ohio; a 144-room Sonesta ES Suites Chicago-Lombard in Lombard, Ill.; a 128-room Sonesta ES Suites in Birmingham, Ala.; a 128-room Suburban Extended Stay Hotel Westminster Denver North in Westminster, Colo; a 124-room Candlewood Suites Syracuse Airport in Syracuse, N.Y.; a 120-room Sonesta ES Suites St. Paul Airport in Egan, Minn.; a 121-room Simply Suites Detroit Southfield in Warren, Mich.; a 106-room Sonesta ES Suites Dublin-Columbus in Columbus, Ohio; a 106-room Sonesta ES Suites in St. Louis; a 105-room Sonesta ES Suites in Memphis; a 98-room Simply Suites in Knoxville, Tenn.; and a 94-room Sonesta ES Suites in Montgomery, Ala.
Atlanta-based Stonehill, which is affiliated with the Peachtree Hotel Group, recently expanded its lending business across all sectors with four senior executive hires in Daniel Siegel, Greg Koenig, Nisu Mehta and Taylor Pike, who all arrived from The Ardent Companies. The firm has originated roughly $5 billion in debt and was ranked as the 10th-largest U.S. commercial real estate hotel lender by origination volume based on the 2021 Mortgage Bankers Association loan origination rankings.
“We want to thank Stonehill for navigating this rough patch in the capital markets together with us,” Jaime Gitler, partner at Churchwick Partners, said in a statement. “We believe that buying great extended stay hospitality assets in good markets will outperform in the long run. Our ability to execute, notwithstanding the interest rate rise since the start of the year, is a testament to a lot of hard work and relationships with our lenders, franchisors and equity partners.”
Andrew Coen can be reached at email@example.com.