February 26, 2020 – Trez Capital, a Canadian-based private real estate lender, funded a $25.5 million first mortgage for a local investment company to acquire and renovate a downtown Atlanta hotel. The 173-room Holiday Inn Express is located at 111 Cone St. NW, Atlanta, Georgia.
The property was originally built in 1922 and last renovated in 2012.
The borrowers are HIE Development, LLC and CG Management, LLC. Brett D. Forman originated the loan on behalf of Trez Capital. The transaction closed February 25.
The borrower will use loan proceeds to renovate all rooms and build out a 3,240 square-foot roof-top meeting room with outdoor patio to attract more corporate clients.
The property includes a small convenience store and a 5,000-square-foot-restaurant that is currently vacant. The owner is actively working to recruit a new operator to take over the space.
Hotel operations will continue during the renovation period which should conclude next summer.
“Our client has a strong plan to restore and modernize this well-located asset and unlock a tremendous amount of value,” said Brett Forman, Executive Managing Director of Trez Capital. “There is a lot of potential to boost revenue with increased leisure and business guest bookings and more corporate events.”
The hotel is located just a few blocks from Centennial Olympic Park, Mercedes-Benz Stadium and other major tourist attractions, and just 11 miles north of Hartsfield International Airport. Holiday Inn Express is a limited-service, mid-priced brand that typically attracts guests desiring short-term stays.
Trez Capital has been active in the Atlanta metro area since opening an office there in 2019. In November 2019, it funded a $26.7 million acquisition and construction loan for a 67-acre mixed-use project and entertainment center known as the Exchange at Gwinnett in Buford, northeast of Atlanta.
Trez Capital provides short-term debt and equity financing typically between six months and 36 months in term ranging from $5 million to more than $100 million in loan value.
With offices in Vancouver, Toronto, Dallas, Palm Beach and Atlanta, the growing private real estate lender has over $3.9 billion in assets under management and has funded more than 1,450 mortgages totaling more than $11 billion since inception.