Meridian Capital Group, America’s most active dealmaker, arranged $53.5 million in senior and mezzanine financing for the construction of a Pod Hotel in Philadelphia, PA, on behalf of Modus Hotels and the Parkway Corporation.
The 36-month, non-recourse construction loan was negotiated by Meridian Senior Managing Director, Morris Betesh, Director, Phil Galligan, and Vice President, Alex Bailkin, who are all based in the company’s New York City headquarters.
“This is evidence that good deals, with good Sponsors, can get done in this difficult construction financing environment. We are looking forward to building on the momentum of the DC Pod by opening the Philadelphia Pod,” said Adam Gollance, CFO of Modus Hotels.
Located at 31 South 19th Street in Philadelphia, PA, the property will be 11 stories and contain 252 rooms in the heart of Center City, adjacent to Rittenhouse Square. The Pod concept targets an increasing segment of hotel guests seeking to stay in stylish boutique hotels in prime locations at competitive rates.
“Our success on this transaction was primarily due to Parkway and Modus’ stellar reputation built over decades. Meridian was able to source a new capital provider to the market and use the firm’s collective knowledge to negotiate competitive terms for the Client,” said Mr. Betesh.
Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties. www.meridiancapital.com