Avatar Financial Group LLC has originated a bridge loan for the Quality Inn & Suites Sequim at Olympic National Park in Sequim, Washington. The national bridge lender, which focuses on commercial real estate, funded a $4.26 million first-lien loan on the hospitality property located at 134 River Road.
The financing carries a two-year term and was structured at 63% loan-to-value. Proceeds were used to retire an existing CMBS loan after that lender required an expedited payoff, and Avatar’s execution satisfied the payoff timetable. The sponsor plans to refinance the bridge loan with permanent financing once the yield-maintenance period on the prior debt has expired and the current round of planned property improvements has been completed.
The Quality Inn & Suites Sequim was built in 2006 and is a three-story hotel near Olympic National Park. The asset contains 60 guestrooms across approximately 29,787 square feet and sits on a 1.4-acre site. Parking is provided by 61 surface spaces. The sponsor is described as an experienced hotel owner on the Olympic Peninsula with a long-standing relationship with Choice Hotels.
Ownership has been investing in the property over the past several years. Approximately $100,000 in capital improvements were completed during the preceding three years, including a roof replacement and pool renovations. In addition, the sponsor has budgeted roughly $200,000 for further upgrades targeting guestrooms and common areas.
The next phase of work is expected to focus on guest-facing finishes. Planned projects include updated soft goods in the rooms, refreshed lobby finishes, and improvements to guest corridors. The bridge structure from Avatar is intended to provide capital and flexibility during this transition period ahead of a planned take-out with permanent financing.
