Hotels & hospitality

$9.3 Million Hotel Loan

Fair Lawn, New Jersey United States

Documents

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Attributes

Loan Status Sub-Performing
Property Type Hospitality

Asset Description

Jones Lang LaSalle (“JLL”) is pleased to offer for sale a commercial mortgage loan with an unpaid principal balance of $9,300,000 (the “Loan”) that has an impending initial maturity in September 2021. The Loan is secured by a first-lien mortgage on the fee-simple interest in a 143-key limited-service hotel located in Fair Lawn, Bergen County, NJ (the “Property” or “Collateral”).

The Loan was originated in August 2018 for an initial three-year term with a one-year extension option. During the initial term, interest-only payments were payable based on 1-month LIBOR + 4.050% (subject to a 2.050% LIBOR floor) and an actual/360-day count method.

The Property is a 4-story limited-service hotel that opened in 1999. The Property is located along NJ Route 208 at the interchange with NJ Route 4, just west of the Garden State Parkway. The area has some of northern New Jersey’s premier shopping within five miles as Garden State Plaza, Bergen Town Center and The Shops at Riverside are all east of the property along NJ Route 4.

Investment Highlights

Strong Historical Performance

Prior to COVID-19, the Property generated NOI greater than $900,000 per year with occupancy above 70% and RevPAR of +/-$90.

Impending Maturity and Workout Flexibility

With the impending initial Loan maturity, a potential purchaser has various workout options available. A full payoff of the loan would include payment of a 0.500% exit fee.

Equity Pledge

The Sponsor pledged their equity interests in the Borrower as additional collateral.

PIP Extension

The franchisor granted an extension on the PIP with initial requirements due by April 2022 and all work to be completed by April 2023.

Convenient Location

Located along the NJ Route 4 corridor in Bergen County, the Property is located less than 5 miles from several of northern New Jersey’s premier shopping centers. Additionally, MetLife Stadium, the new American Dream mall, Newark Liberty International Airport, and the George Washington Bridge into northern Manhattan are all within 20-30-minute drives from the Property.

Last Updated Date: 30 Aug 2021
Tom Hall
Tom Hall
Managing Director, Capital Markets
Adam Grant
Adam Grant
Vice President, Production Support

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Last Updated Date: 30 Aug 2021

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