SCRANTON, PA-The historic 145-room Radisson Lackawanna Station Hotel is getting a multimillion-dollar upgrade. Calvin Investments LLC has taken out $8.4 million in permanent financing.
The six-story hotel property was originally built in 1908 at the neo-classical Lackawanna Rail Station. It was converted into a hotel in 1983 with a $13-million redevelopment, and is on the National Register of Historic Places. Carmen's, the only four-diamond restaurant in the city, resides inside. Its 100th birthday is next year.
AFC Realty Capital arranged the 10-year fixed-rate loan, provided by Bear Sterns. AFC had also arranged acquisition and renovation financing two years ago when the hotel switched hands. This new permanent financing completely recoups the sponsors' equity investment. Two years ago, Calvin Investments bought the hotel with a $6.84-million senior loan from the Structured Finance Group of Marathon Asset Management.
"Lenders--including Wall Street--will continue to finance compelling transactions, even in tertiary markets," says Michael Sonnabend, principal for AFC. "Great deals do exist in these markets, and we've been able to help lenders understand the value of the opportunities we present."
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