IBORROW PROVIDES FINANCING FOR ACQUISITION AND RENOVATION OF FAMOUS HAMPTONS BOUTIQUE HOTEL ON LONG ISLAND, NEW YORK
I borrowa nationwide private direct lender for commercial real estate, provided financing to a well-known boutique hotel owner and operator to support the acquisition and renovation of Wainscott Inn, a 30-room boutique inn located on the east end of Long Island in Sagaponack, New York.
The funding comes at a time when travel resumes post-pandemic and hospitality fundamentals are improving, according to Brian Good, CEO of iBorrow.
“As people start to travel again, the hospitality industry is benefiting from the rebound from the effects of the pandemic,” Good says. “In the fourth quarter of 2021, hotel occupancy had risen to 63.2% across the country against 48.9% a year earlier. As a result, hotel investors are pouring more and more capital into assets like Wainscott Inn, which is located in an ideal destination for both business and leisure stays.
iBorrow’s $3.3 million financing of this asset helps the borrower add the property to their portfolio and will serve as a bridge loan while the sponsor seeks building permits and city approvals.
“iBorrow has always been a reliable source to help us fund projects we have invested in over the years,” says Jon Heoing of Atlantic Equity Partners. “This particular investment shows strong potential as tourism and travel recovers. The financing that iBorrow helped secure is structured to help us execute our business plan to acquire the asset and implement comprehensive renovations. »
Lenders will likely be more open to underwriting hotel deals as industry fundamentals improve, Good says.
“While hospitality has been one of the slowest asset classes to rebound from the pandemic, it is expected to make a full recovery by 2025. In fact, the year ahead is shaping up to be positive, with hotel occupancy rates and revenue per available room (RevPAR) expected to approach 2019 levels,” says Good. “These indicators reinforce our confidence in the long-term success of this investment.”
Wainscott Inn is located at 3720 Montauk Hwy in Sagaponack, New York.
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