SPRINGFIELD, IL-AFC Hotel Finance Group has arranged $35 million of financing for a portfolio of six Michigan and Wisconsin hotels. The owner, a Springfield, IL-based hotel company, is using the financing, which was placed with a European Investment Bank, to pay off existing loans from local banks. The 10-year, fixed-rate, non-recourse loan is assumable and carries a 5.95% interest rate and a 25-year amortization, says Peter M. Berk, AFC president.

The transaction includes select and limited hotels that are all part of the Hilton or Marriott brands. Berk, who originated the financing, tells GlobeSt.com that about a third of the 80 transactions his company has completed for select and limited service hotels have been for properties in the Midwest. He says that lenders tend to view these types of hotels as a good investment, because there is “less to go wrong without the restaurant component.”

The six-building portfolio comprises the Hampton Inn in Janesville, WI; Fairfield Inn & Suites in Muskegon, MI; Hampton Inn in Muskegon, MI; Fairfield Inn in Okemos MI; Hilton Garden Inn in Plymouth MI; and Towne Place Suites in East Lansing, MI.

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