46,000 square foot, eight-story, flagged hotel, in a neighborhood in Queens, comprised of 96 keys.
The owner needed to finance the construction of a hotel on his property. He projected that he could have construction finished in less than a year, with the hotel running and ready to open shortly after. The problem was, his bank was dragging out the loan process, and he needed to fast-track the project.
By going the route of a traditional bank to close the loan, he would be losing valuable time that could have been used to move the construction forward.
He turned to TBG Funding to finance the loan, knowing that time was of the essence in this case. His property would only begin generating profits once the hotel was built, and he couldn’t afford waiting for the bank to finance the construction.
After considering many different factors, TBG’s team underwrote the loan. We understood the borrower’s business model and were able to offer a financing package that was very attractive to the developer.
Nine months after the deal was closed, the construction of an eight-story hotel was completed. TBG Funding’s average of $870,000 per construction draw. The hotel is now open and operating. Had the owner waited for his bank to approve the loan, it may have taken an additional year to open the hotel and begin generating revenue.
Let us know if we can help you overcome your financing challenges.
Visit tbgfunding.com, or call 718-705-9300
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