GLENDALE, Ariz., April 18, 2017 /PRNewswire/ -- AVANA Capital has provided a $19 million loan to fund the construction of a Hilton Garden Inn hotel in Lynnwood, Washington, a fast-growing hub city in the Greater Seattle region. The hotel, located near the Lynnwood Convention Center, will be the city's first new hotel in five years.
Developer Nick Patel and his management company Kalyan Hospitality own ten hotels in Virginia and two hotels in Washington state. "We believe the expanding retail and service corridor along with the convention center present a growth opportunity," Patel said. "Lynnwood is an up-and-coming area that needs a new, contemporary-style hotel to target the millenial market, corporate travelers and young families."
Set on two acres, the Lynnwood Hilton will be a full-service hotel with 155 rooms and a casual dining restaurant that seats 66. It will also have a spacious fitness center, indoor swimming pool, terrace area, business center, meeting rooms and a boardroom.
In researching financing options, Patel discovered AVANA Capital, a lender headquartered in Glendale, Arizona, with $350 million set aside to fund community-based projects like hotels. Patel worked with AVANA Capital through the Small Business Administration. As an SBA loan, AVANA Capital was able to fund the hotel at 75% loan to value, whereas traditional lenders typically only fund 65%-70% loan to value. By requiring less upfront capital, Patel has liquidity that will allow for future growth of this hotel or possibly the development of additional properties, he says.
According to Sanat Patel, CSO of AVANA Capital (no relation to Nick Patel), "We decided to finance this project for several reasons. Nick is a hands-on owner who travels between his hotels and participates in their day-to-day operation. A self-made man who immigrated to the U.S. from England, he has spent the past 15 years operating hotel properties with quality brands including Marriott, IHG and Choice. He and his Kalyan Hospitality management team know the hotel business inside and out."
Sanat said AVANA Capital also agreed with Nick's selection of the Lynnwood location, which is served by Interstates 90, 5, and 405. "The Hilton will fit well into the community," he explained. He also praised Washington's business-friendly environment. "The government offers incentives to businesses to locate here and is investing in technology to attract a younger population, which we see indicative of future growth potential," Sanat said.
Construction on the Lynnwood Hilton Garden Inn began in March 2017 and target completion is June 2018. The project will create more than 100 construction jobs and 25 permanent jobs once the hotel opens. Once it opens, the hotel will pay an estimated $546,630 in lodging sales tax.
"In today's market, success for an entrepreneur often depends on working with the right financial partner," Nick said. "Through their financing solutions and certainty of execution, AVANA is helping me achieve my dream. They understood our market and the hospitality industry. Their team crafted a solution that looked beyond the numbers to make our Hilton Garden Inn a reality."
AVANA Capital is enthusiastic about the project too. "We support building hotels like the Lynnwood Hilton Garden Inn," said Sanat. "Our mission is to provide small business owners like Nick Patel with the capital they need to succeed. As a non-bank lender, we have the flexibility to work with entrepreneurs and fund promising new ventures that can grow the U.S. economy and generate jobs."
AVANA Capital is a nationwide commercial real estate lender based in Glendale, Arizona. It offers owner occupied commercial real estate financing through conventional, bridge and SBA 504 lending programs for acquisition, refinance and construction. Since its founding in 2002, the company has funded more than $900 million in loans and is known for its speed and certainty of execution. For more information, visit www.avanacapital.com.
SOURCE AVANA Capital