Axilla Capital Closes $7.2 Million "Cash-Out"
Refinance for the Hampton Inn & Suites Elyria
TROY, MI (June 9, 2017) – Axilla Capital, LLC announced today that it closed a $7.2 million CMBS loan for the Hampton Inn & Suites in Elyria, Ohio. The loan proceeds were used to refinance the hotel’s existing mortgage and repatriate part of the owners’ equity. Managing Principal Joel Mazur and Associate Tom Fleming of Axilla Capital represented the borrower.
“There were a host of obstacles to overcome with this transaction,” says Mazur. The property abuts Elyria Mall, a 1.1 million-square-foot enclosed mall that has a history of vacancy and turnover problems since the mid-1990s; the Cleveland MSA is absorbing significant new hotel supply as of late; and
the borrower needed to effectuate a “lot split” so the borrower’s principals could complete the development of an adjacent hotel. “Given these challenges, it required a true team effort from all the players involved,” added Fleming. “Every participant in this deal worked diligently to ensure we fulfilled our client’s expectations.”
Demand at the 97-room Hampton Inn, however, was not dependent upon the mall as evidenced by its historically strong RevPAR performance. The hotel, developed by the borrower in 2013, is conveniently located off Route 57 between Interstate 90 and Interstate 80 (Ohio Turnpike). Its location provides easy access to the surrounding area as well as Cleveland’s western suburbs and the Cleveland Hopkins International Airport.
The City of Elyria recently commissioned a study concluding that the Elyria Mall should be transformed into a more modern, mixed-use, shopping center featuring retail, restaurants and a residential complex. Because of the mall’s ideal positioning between Interstate 90 and the Ohio Turnpike, the site would free up 92 acres of prime developable land, which should serve as a catalyst for the market’s revitalization.
About Axilla Capital, LLC
Axilla Capital, LLC is a leading commercial real estate finance and advisory company that specializes in arranging debt, mezzanine and equity capital for hotels, multifamily, office, retail, industrial and self-storage properties. The company’s principals have a combined track record of closing more than $2 billion of transactions. Website: www.axillacapital.com