The three-year, 7.08%-interest loan replaces the original first mortgage on the property which Noble developed for $9.4 million. The new loan follows RockBridge's July 2002 closing of a $1.3 million mezzanine loan, later increased to $1.8 million.

At closing, RockBridge sold a senior participation in the first mortgage and retained the $1 million balance in the RockBridge Real Estate Fund LLC, RockBridge managing director James T. Merkel says in a prepared statement. "When combined with the original mezzanine load, the first mortgage loan originated by RockBridge represents 86.5% of the project's total capitalization," Merkel says.

He calls the hotel "a strong performing property" whose RevPAR penetration in the market has "consistently exceeded 100% since March 2001." Since opening in December 1999, the hotel "has outperformed the market and has generated strong NOI returns," Merkel says.