Thorofare Capital has recently funded a $4,450,000 loan to refinance a 110-room Comfort Inn & Suites Hotel located in El Centro, California. The previous lender had issued a sudden demand for payoff, leaving the borrower only a matter of weeks to refinance or else be foreclosed upon. Thorofare was able to refinance the property within a short timeframe, issuing a loan that has an excellent debt yield of 14.4%, a debt coverage ratio of 1.27x, and a loan basis of $40,344 per key.

The borrower acquired the hotel in 2007 and over the course of 2008 – 2010, the borrower completed a $1,000,000 property improvement plan and renewed the Comfort Inn franchise agreement with Choice Hotels, which expires in 2027. The 2002-vintage, 65,980 square foot property is 62% occupied and generates an ADR of $84 and a RevPAR of $46.42. The property has 160 striped parking lot spaces. The borrower, a family of hoteliers, has significant hospitality experience and currently owns 10 other limited service hotels.

Thorofare provided substantial support, flexible pre-payment options, and unmatched certainty of execution for the borrower to refinance its existing loan within the short timeframe required by a quick payoff demand issued by the existing lender.