Karlin Real Estate has provided $96m in first mortgage debt to refinance two Arizona resort properties and another in Colorado.
The firm provided a three-year (with two one-year extension options), $50m senior loan to IMH Financial Corporation to refinance the L’Auberge de Sedona and the adjacent Orchards Inn in Sedona, Arizona; and a five-year, $46m senior loan to Grand Heritage Hotel Group on The Stanley Hotel in Estes Park, Colorado.
The funds will be used to pay off existing debt and furnish improvements to the properties. IMH will perform capital improvements to L’Auberge, which features 87 rooms and cottages, and a sweeping renovation of the Taos Cantina, a restaurant inside the 70-room Orchards Inn.
“Both properties are demonstrating increasingly strong fundamentals in occupancy as well as [average daily rate] and are well positioned to take advantage of the recovering lodging market,” said Larry Grantham, regarding the IMH loan, in a statement.
Grand Heritage will create an additional 50-room luxury lodging building adjacent to the existing 140-room Stanley, which it will brand under the Aspire Hotels and Resorts name. It will also use a portion of the proceeds to acquire Peñasco Del Sol Resort and Conference Center, a 208-room beachfront hotel in Puerto Peñasco, Mexico, which it has managed since 2010.
“Our financing allowed Grand Heritage to take a big first step on what we believe to be an exciting growth strategy,” added Karlin managing director Michael Hurst. “We look forward to continuing to build upon the strategic relationship with Grand Heritage over the long-term.”