The southeast regional office of Anaheim, CA-based Fremont Investment & Loan is funding the construction work through a floating rate loan starting at 8% with semi-annual adjustments. The loan is amortized over 20 years. Fremont is confident the loan is well placed.
"Daytona is predominantly a 'drive-to' market, which should insulate it from the economic shocks from the current recession and terrorist attack repercussions," Stephen R. McRae, Fremont's vice president and regional manager, says in a prepared statement.
The loan is also secure, McRae feels, because the total costs of the project are well below replacement costs, "substantially reducing the risk that new competitive supply could be brought on line."
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