The investors acquired the 2000-constructed hotel at 3610 Plymouth Rd. from a Chicago-based seller. James A. Jarvis with White Pines Funding, LLC of Grand Rapids, brokered the loan, which was underwritten by BMC Capital, LP of Dallas.

According to Michael Johnston, vice president with BMC Capital, the hotel has an 80% occupancy with an average daily room rate of $53, which are very strong numbers from the lender's perspective. "For that particular market, those numbers are very stable," Johnston comments. "There is some strong competition in the area, from seven other hotels. Given that, this hotel does extremely well."

Johnston tells GlobeSt.com that the positive ADR and occupancy numbers, combined with the hotel's location and the borrower's track record helped boost the lender's comfort level with the project. "The historical financials of the location were very strong, as was the management ability of the buyers," he says.

The investors have had successful ownership of a similar hotel property and a Quiznos restaurant, meaning "we knew the management strength was there, and they had a good record of paying the bills on time," Johnston says. The loan itself comes with a 25-year amortization with an 85% LTV. The floating rate, on average, is prime-plus two.