Thorofare Capital has funded an $11,500,000 acquisition loan for a 242-room full service Sheraton by Starwood hotel located in Lisle/Naperville, a Chicago suburb.

The property, built in 1987, includes eight stories, three restaurants, a business center, and 25,000 square feet of flexible meeting & ballroom space. The borrower has committed a $2,500,000 non-refundable deposit and $1,000,000 in property improvement dollars to secure a Sheraton Hotel flag out of the total $15,250,000 acquisition cost, equating to 70% LTC. The borrower required a fast paced lender to meet a one week deadline to close after a conventional lender failed to complete the acquisition financing. Due to the property not yet being stabilized, Thorofare structured the transaction to include two Hampton Inn by Hilton Hotels that are also owned by the sponsor as additional collateral in order for the global debt service coverage ratio to be above Thorofare’s minimum requirement.

The borrower is in a position to add considerable value to this asset by implementing a new fully executed 20-year franchise agreement Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”). Subsequent to the closing, the subject property is the only full service Starwood asset in the area, allowing it to benefit from the large number of Starwood Preferred Guest travelers visiting the area.

The property is surrounded by numerous large national & international businesses and is directly across the street from the corporate headquarters of Navistar, a truck and engine components manufacturer with approximately $14 billion in yearly revenue. Navistar’s 80+/- acre headquarters houses almost 3,000 employees.

The property is the only hotel in the area that has 25,000 square feet of meeting space, which presents upside in addition to room rentals. The hotel is located in the highly-visible and easily-accessible Village of Lisle, along the Interstate 88 East-West Tollway. The Lisle/Naperville area possesses a diversified economy that boasts technology companies, financial institutions, oil & gas companies and the headquarters of many consumer products and agricultural companies. Companies flock to the area for the proximity to Chicago, along with the quality of life present in the high end suburbs.