The property has a strong revenue stream from conferences and banquets, as well as business and vacation stays, says a Midas Financials Inc. spokeswoman. The company, based in Dallas, was able to arrange a 6.5% loan to Erie, which came into the property in 2005. The owner bought out the partners who had co-developed the property in 1963. "The new owner plans to renovate the property and start construction of the water park in the next seven-to-eight months," she says.

There were questions of whether a lender would loan for a Michigan property. "Many lenders were leery of the Michigan market, which has been suffering an economic downturn," she tells GlobeSt.com. "The borrower was considering accepting a high-interest loan from a hard-money lender, due to the difficulties with conventional lenders and Michigan. However, the owner has an interest in three other successful Midwestern hotels, so (we) felt comfortable financing this property in spite of some of the state's problems."