Thorofare Capital has funded a $5,000,000 bridge loan for a sponsor’s acquisition of Quail Hollow, a 176-room hotel with 15,000 sf of meeting space, situated on 11.11± acres in Painesville, Ohio which is 30 miles NE of Cleveland.

Quail Hollow includes 176 guestrooms and 4 suites, an indoor and (seasonal) outdoor pool, fitness center, sauna, and a restaurant and lounge. The property was formerly operated as the Renaissance Hotel by Marriott and remains part of a larger 700-acre resort which also offers access to two 18-hole championship golf courses. The property is the only hotel at the resort. The golf courses are separately owned by Club Corp.

The loan includes a $500,000 reserve for capital expenditures to remediate deferred maintenance and a hybrid payment reserve to account for seasonality. This value-add transaction represents an opportunity to acquire a mismanaged asset at a relatively low cost basis and implement a turnaround strategy through aggressive sales, institutional-quality management, and attracting a wider customer base by improving the market perception of this asset and highlighting the amenities of the adjacent country club and resort.

The sponsorship group’s parent company currently owns and operates approximately $725 million of commercial real estate (including 25 hotels) across the US and Asia Pacific. The sponsor has entered into a management agreement with a Southern California-based hotel management company that specializes in full-service and select-service lodging properties across the US. Thorofare placed the loan in its third discretionary debt fund, Thorofare Asset Based Lending Fund III, L.P.