Slatt Capital has arranged acquisition financing totaling $12,060,000 for a two-property hospitality portfolio in Rohnert Park. The portfolio consists of 200 rooms across the Budget Inn and the Rodeway Inn, both long-established assets originally built in 1984. The financing supports the purchase of the entire portfolio as a going-concern hospitality investment.
The permanent, full-recourse debt was provided by Commercial Bank of California. The lender committed to a structure tailored for an owner-user hospitality acquisition, delivering proceeds sufficient to complete the transaction under an SBA 504 execution. This structure is designed to provide long-term, fixed-rate financing and was utilized in lieu of more traditional commercial mortgage options.
Assistant Vice President Daniel Yeghiazarian of Slatt Capital led the financing assignment. His team arranged the loan and coordinated with the bank and the SBA 504 program to finalize the structure for the buyer. According to Slatt Capital, the underwriting focused on the portfolio’s projected performance rather than relying solely on historical metrics.
The financing was underwritten using a projection-based cash flow approach, allowing the lender to evaluate the portfolio’s anticipated income profile and the sponsor’s business plan. This method enabled the acquisition to move forward even though trailing operating figures alone may not have fully captured the future income potential of the combined Budget Inn and Rodeway Inn assets.
Slatt Capital noted that the SBA 504 program was viewed as a strong fit for this assignment because of its blended cost of capital. By combining SBA and conventional components, the structure provided a lower blended interest rate than many conventional alternatives. That rate advantage is expected to support the borrower’s objective of improving cash flow from the outset of ownership, aligning the capital stack with the operational strategy for the two Rohnert Park hotels.
