LOUISVILLE, KENTUCKY (April 29, 2019) – Randall Waddell, senior vice president of NorthMarq’s Louisville-based regional office, negotiated the $10 million refinance of The Kentucky Castle, a 14-unit hospitality property located at 230 Pisgah Pike in Versailles, Kentucky. The transaction was structured with a 2-year interest-only term which then commences amortization on a 20-year schedule. NorthMarq arranged financing for the borrower through its relationship with a regional bank.
This boutique hotel, named “The Most Beautiful Hotel in Kentucky” by Architecture Digest, features a farm-to-table restaurant, private spaces for small events (in the hotels bourbon hall, dining and music room), private spaces for larger groups in the hotels ballroom as well as rooftop, outdoor space and a tent—perfect for weddings or corporate dinners / retreats.
“Challenges to financing the property included the lack of a track record resulting from new ownership, not having a traditional hospitality ‘flag’, and the hybrid business model of a luxury hotel combined with an active events destination. Further, earn-out dollars for planned renovation and expansion were needed. These concerns were overcome by the selected lender following a tour of this unique property. The sponsor’s passion for The Kentucky Castle and his vision for future enhancements were compelling, resulting in structured loan terms that achieved our clients goals and more,” said Waddell.