Silver Arch Capital Partners Completes $5 Million DPO Financing for Two Hotels

Holiday Inn Center City, Allentown, PA

ALLENTOWN, PA—Silver Arch Capital Partners , which specializes in bridge loans to owners, investors and developers in need of funding outside the scope of traditional banks and lenders, has completed a $5 million financing secured by two hotels, one in Allentown, PA, and the other in Lynchburg, VA. Jeffrey Wolfer , president and CEO of the Hackensack, NJ-based private lender, says the funding will be utilized for a discounted payoff of existing debt. “The borrower came to us seeking a loan to execute a discounted payoff of the existing financing on the two properties, and conventional banks simply don’t want to provide loans for that purpose without the borrower providing significant cash equity,” says Wolfer. “At the same time, the properties are situated in secondary markets, which makes it even more difficult to obtain financing. Lenders typically look to provide financing in larger markets, where they feel most comfortable.” The hotel properties operate under the Holiday Inn banner in the Mid-Atlantic region, and are owned by experienced owner/operators. Located in Center City Allentown, PA, the nine-story Holiday Inn includes a total of 224 guest rooms. “The market has been matching the region’s job growth,” says Wolfer . “The tremendous downtown revitalization of Allentown over the last several years spearheaded by the development of the 10,000-seat PPL Center , will continue to support the hospitality growth in Allentown.” The second property in the transaction is the Holiday Inn Select Hotel & Conference Center , a 241-room property consisting of a single-story building and attached eight-story tower on 1.75 acres in Lynchburg, VA. “Lynchburg has traditionally enjoyed steady growth, and the current solid economic outlook enhances long-term economic growth,” Wolfer says. “The area will likely continue to show growth in population, median household income and retail sales—all key drivers for the hospitality industry.”