(Read more on the debt and equity markets.)
ERIE, PA-Scott Enterprise Group has obtained $81-million first-mortgage financing on its 10-property portfolio here. The portfolio includes six hotels with an aggregate of 589 rooms, two restaurants aggregating 15,000 sf, a 16,000-sf conference center and a 65,340-sf indoor water park.
All but one of the properties are located at the Pennsylvania Thruway exit along Peach Street. The other, a Days Inn, is approximately three miles east of Peach Street on Schultz Road. Michael Lorigo, account executive for Getzville, NY-based Largo Real Estate Advisors Inc., arranged the financing.
It is a 10-year, fixed rate, non-recourse loan with a 25-year amortization. Lorigo tells GlobeSt.com that Scott will use $49 million of the refinancing to repay existing debt on the portfolio. Without disclosing the interest rate of the new financing, Lorigo says, "it's significantly lower, at least 2% below, the previous mortgage on the portfolio, and it is also non-recourse," he says.
With the balance of the funding Scott plans a $6-million expansion of the Splash Lagoon water park, which will include the addition of a wave pool. The locally based Scott entertainment and hospitality company will also construct a Hilton Garden Inn behind its existing Marriott property on Peach Street and a Staybridge Suites extended-stay hotel in nearby Buffalo.
The Scott family began with a single independent motel, located at the entrance to the Peninsula on Lake Erie here in the early 1950s. The privately owned hospitality conglomerate operates the hotels, restaurants and entertainment venues that it develops and owns.
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