Brooklyn, NY Meridian Capital Group arranged $8.5 million in construction financing for the ground-up development of a Days Inn hotel, on behalf of a hotel developer.
The 24-month construction loan, provided by a savings bank, features a floating rate in the mid-five percent range and full-term interest-only payments. This transaction was negotiated by Meridian vice president, Eli Finkel, and vice president, Eli Serebrowski.
The Days Inn hotel is planned to be five stories and will contain a total of 91 keys.
The property is located on Eastern Pwy., a historic promenade with a pedestrian mall on either side that was designed by the renowned urban planners behind both nearby Prospect Park and Manhattan’s Central Park. Its location in Crown Heights is close to some of the best attractions that Brooklyn has to offer, including Prospect Park, the Brooklyn Botanic Gardens, and the Brooklyn Museum, which is New York City’s second largest museum in physical size and houses an art collection of roughly 1.5 million works. Crown Heights also has a rich architectural landscape, with historic row houses lining the streets. The neighborhood is also home to fun and interesting restaurants on nearby Franklin Avenue.
“Our team is proud to have again arranged construction financing from a bank in capital markets environment where lenders are scaling back on ground-up construction, especially for hotel developments,” said Serebrowski. “Meridian recently closed several similar transactions for this developer throughout Manhattan, the Bronx, and Brooklyn. Having hands-on experience and strong lender relationships allowed us to quickly identify the appropriate bank and negotiate favorable terms that will benefit the project.”