Cronheim Hotel Capital secures $50.4 million for two properties on Amelia Island

Fernandina Beach, FL Cronheim Hotel Capital (CHC) has secured a $29.9 million loan for the refinance and conversion of the Ocean Coast Hotel to a Holiday Inn Resort, as well as a $20.5 million loan for the refinance of the Amelia Hotel, an independent oceanfront property. Both financings originated with a regional bank and include USDA and PACE components.

The co-sponsors, Innisfree Hotels and RREAF Holdings, purchased the properties with the intention of significant upgrades including the conversion of one of the unbranded assets to a Holiday Inn Resort. The sponsors have mastered the value-add beachfront real estate hotel investment, with these two adding to an extensive portfolio across both the panhandle and northeast coast of Florida.

Michael McGuire, executive vice president, said “The heavy value add component brought challenges to the financing and required creativity to deliver the best possible option. USDA coupled with PACE enabled over 80% financing that is fully amortizing over 25 years. Once renovated, the Sponsors will control almost all of the hotels on Amelia Island, creating the optimal environment for revenue growth as well as enabling efficiency through operating synergies.”

McGuire said “The proven track record combined with the depth of expertise of Innisfree and RREAF were key drivers to securing the refinancing. Both Innisfree and RREAF place a heavy focus on their team approach and there was a dedicated team across both organizations helping make this happen. The leadership of John Nowak of Innisfree played a vital role in navigating two sponsorship groups, the USDA, and the PACE lender