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$17.25-Mil Financing Arranged for Courtyard by Marriott-to-be

LYNDHURST, NJ-Rockbridge Capital put together the package for the new owner of the property, which currently operates as the Novotel Hotel. The facility will get a $6.5 million makeover before it's reflagged.

By Eric Peterson | Updated on August 21, 2001

LYNDHURST, NJ-The Novotel Hotel, primarily a European brand with little national name recognition in the US, has struggled against its competition in the Northern New Jersey market. But that figures to change now that the property has been sold and will soon fly the flag of Courtyard by Marriott. The buyer is Boycon, LLC, a 50-50 joint venture between Boykin Hotel Properties and Concord Lodging Investment Partners.

The $17.25-million financing package for the acquisition was arranged by RockBridge Capital, Inc. of Columbus, OH. At the closing of the loan, which represents an estimated 70% of the total acquisition and renovation costs, RockBridge sold a senior participation ($15.525 million) to Nationwide Life Insurance Co. The company retained the other 10% in a first loss position in the RockBridge Real Estate Fund.

The loan carries a three-year term, with pricing floating at 345 basis points over the 30-day LIBOR. Amortization is interest-only in the first year, and carries a 25-year amortization after that. RockBridge will continue to service and asset-manage the whole loan through maturity.

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