The property has a strong revenue stream from conferences andbanquets, as well as business and vacation stays, says a MidasFinancials Inc. spokeswoman. The company, based in Dallas, was ableto arrange a 6.5% loan to Erie, which came into the property in2005. The owner bought out the partners who had co-developed theproperty in 1963. "The new owner plans to renovate the property andstart construction of the water park in the next seven-to-eightmonths," she says.

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There were questions of whether a lender would loan for aMichigan property. "Many lenders were leery of the Michigan market,which has been suffering an economic downturn," she tellsGlobeSt.com. "The borrower was considering accepting ahigh-interest loan from a hard-money lender, due to thedifficulties with conventional lenders and Michigan. However, theowner has an interest in three other successful Midwestern hotels,so (we) felt comfortable financing this property in spite of someof the state's problems."

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