The purpose of this sub-participation loan is to finance the construction of a 3-story, 104,108 square foot, 72-room hotel on 2.39 acres that will be a Fairfield Inn & Suites by Marriott. The subject site was formerly part of a larger 5.71-acre parcel owned by the developer. The 2.39-acre subject parcel has been subdivided for the development of the proposed subject hotel. The parcel’s adjacent uses are set forth in the following table.
The project site is approximately 5.87 acres (255,697 square feet). The project site is ready for development. The proposed project involves site development for, and construction of, a 43,227 square foot, three-story masonry-, steel-, and wood-framed building that, when complete, will be used as a hotel. The building will also feature a 1,570 square foot Porte Cochere (a covered entrance where vehicles stop to discharge passengers) at the main entrance of the building. Total square footage of the building and the Porte Cochere will be 44,797 square feet. Site development includes but is not limited
to: parking areas; storm water collection systems; site lighting; and landscaping. The hotel building, when complete, will feature 72 hotel rooms, reception area/lobby, and lounge area. Additional amenities will include but are not limited to the following: food prep area; breakfast/eating area; outdoor swimming pool and spa; pantry; employee break room; staff laundry; uni-sex restroom; men’s and women’s restrooms; fitness room; business center/work area; kitchen area; conference room; meeting rooms; and manager’s office.
The proposed subject hotel will operate under a franchise agreement as a Fairfield Inn & Suites by Marriott. The agreement, which was signed in 2015, will span 20 years from the opening of the hotel. The franchise agreement calls for a royalty fee of 2.0% of rooms revenue for the first year, 3.0% during the second year, 4.0% for the third year, and 5.0% for the remainder of the term. A marketing assessment fee of 2.5% of rooms revenue is also stipulated throughout the duration of the agreement.
The proposed subject hotel will be managed by American Hospitality Services, Inc. Terms of this agreement call for a base management fee of 3.0% of gross revenues with no provision for an incentive fee.
|Loan Term||11.3 yrs|
|Participation Availability Amount||$7,999,115|
|Minimum Participation Amount||$250,000|
|Original Loan Amount||$9,875,450|
|Full Loan Documentation||Link|