CINCINNATI, OHIO (August 10, 2022) – Jeff Dietz, senior vice president in Northmarq’s Cincinnati office, secured a $12.25 million loan for the refinancing of the Staybridge Suites Portfolio, which includes two extended-stay hotel properties – one in Kalamazoo, Michigan, and the other in Lansing/Okemos, Michigan.
Northmarq negotiated the permanent, fixed-rate, non-recourse loan for Hotel Development Services LLC (HDS) through its correspondent relationship with a Life Insurance Company. The transaction was structured with a 5-year loan term on a 25-year amortization schedule. The borrower will use the proceeds from the loan to take out maturing CMBS loans.
Staybridge Suites is a flagship brand of InterContinental Hotel Group (IHG), which owns 16 multinational brands, also including Holiday Inn, Candlewood Suites, and Crowne Plaza.
“We initially obtained an $11 million loan facility for HDS,” Dietz said. “However, we increased the loan facility to $12.25 million to allow for HDS’ upcoming PIP, or property improvement plan. This plan is designed to bring a hotel property into compliance with the latest brand standards. HDS’ PIP is slated to be completed in 2023.”
Oxford, Ohio-based HDS, formed in 1997, is a privately held, national real estate development, construction, and management company, which services leading brands including IHG, Hilton, and Marriott. Its portfolio boasts more than 20 hotels. Dietz’s longstanding relationship with HDS dates back to 2014.
“Jeff and his team at Northmarq are great partners,” says David Wespiser, founding partner at Hotel Development Services. “For the Staybridge Suites transaction, Northmarq secured attractive terms and ensured a smooth closing process,” Wespiser noted.
“Because Jeff knows us well, he and Northmarq brought us a solution for refinancing these two hotels, which were going to be up against a maturity date,” explained Wespiser. “We were anxious to refinance at maturity with a different lending structure. Jeff knew what we needed and was able to craft a transaction with this lender under the terms that made sense for us and fit with our strategy for these two assets.”
Dietz noted that it is currently a challenging lending environment for hotel properties. “In the challenging hospitality lending space, Northmarq delivered a non-recourse loan facility to HDS,” said Dietz. “Our well-established relationship with the lender was a key component in the transaction. Real estate financing is a relationship-driven business, and David trusted that we were going to work hard for him and get the deal completed.” Dietz has high regards for Wespiser and his company.
“David is very humble and knows his business inside and out. He is well thought of by his peers and within the industry,” said Dietz, adding that Wespiser sits on the 2022 Global Board of Directors of the IHG Owners Association.
The properties include:
• Staybridge Suites, located at 2001 Seneca Lane, Kalamazoo, Michigan, was built in 2006.
• Staybridge Suites, located at 3553 Meridian Crossing Drive Okemos, Michigan, was built in 2008.
Each property offers 95 rooms across three-stories with floor plan options of studio suites, one-bedroom suites, and two-bedroom suites with two bathrooms. The hotel amenities include on-site self-laundry facilities, complimentary breakfast, fitness centers, full-service housekeeping, and free standard wireless internet. The suites offer fully equipped kitchens, work desks, TVs, and living spaces.
The Kalamazoo Staybridge is conveniently located just a half mile off US-131 and just over three miles southwest of downtown Kalamazoo. It is minutes from I-94 and Western Michigan University and is surrounded by popular retailers and eateries including Costco, Trader Joe’s, Starbucks, and Crumbl Cookies.
The Lansing/Okemos Staybridge is in a growing area just 9.5 miles southeast of downtown Lansing. Conveniently located just off I-96, travelers are minutes away from Michigan State University. The hotel is surrounded by restaurants, medical, and business offices. Additionally, a luxury apartment community called Elevation Apartments is currently being developed adjacent to the hotel.