Thorofare Capital has funded a $2,856,000 bridge loan for the discounted payoff of a $5,400,000 loan secured by an 80-key Wingate Inn by Wyndham Hotel located at on South Arlington Heights Road in Arlington Heights, Illinois. Thorofare’s financing, which closed in less than three weeks from application, allowed the sponsor to capture a significant principal reduction and benefit from substantial upside by improving the profitability of the hotel due to the improved equity basis and lower monthly interest payments.

The matured loan with an unpaid balance of $5,400,000 was originated in 2006 for the refinancing of a construction loan provided to the sponsor by syndication of three financial institutions. The lender experienced significant delinquencies in its real estate loan holdings, and in 2009 the lender was closed by the FDIC. Subsequently, all accounts and assets of the lender were transferred to the new note holder, who accepted a discounted payoff in the amount of $2,760,000, representing 51% discount from the unpaid balance.

The hotel currently operates as a Wingate by Wyndham under a license agreement with Wyndham Hotels. The property maintains good occupancy and the in-place net operating revenue was well in excess of the required debt service at the time of closing. The hotel features a breakfast dining area, located on the lobby level. Additional amenities include a business center and a guest laundry room, as well as vending areas near the elevator bay on every guestroom floor. In 2013, the lobby was upgraded with new furniture. The area enjoys a well-developed network of local roadways, highways, and interstates. Arlington Heights Road, Algonquin Road, and Interstates 90, 290, and 294 facilitate travel between the property and the principal concentrations of business activity and population in the region. The hotel is highly visible from within its neighborhood, including from Arlington Heights Road and the surrounding roadways, due to its identifiable signage and its frontage along Arlington Heights Road.