Thorofare Capital has funded a $7.5 million fixed rate commercial mortgage for the refinance of the Quality Inn in Brooklyn, New York. The hotel totals 56 newly-constructed rooms, with the sponsor receiving certificate of occupancy in April 2015. The property benefits from a 15-year licensing agreement with Choice Hotels International.

The sponsor sought a reliable financing solution to refinance out the existing construction loan from an international bank. The sponsor approached Thorofare for certainty of execution, competitive proceeds and a flexible structure.

The property features strong frontage along Chester Street and Pitkin Avenue. Pitkin Avenue is a major retail thoroughfare within the neighborhood that is prime to experience gentrification, resulting in an increased demand for value-oriented hotel rooms.

The cash-out refinancing was utilized by the sponsor to retire the construction debt and repatriate equity, which will be invested in a similar hotel construction project. The interest-only financing was sized to 65% LTV. The fixed rate loan carries an initial term of 18 months and includes two, six-month extension options.

The sponsor is a New York City-based hospitality development and investment firm specializing in the acquisition, construction and management of value-flagged, boutique-sized hotels within the outer boroughs of New York City.