March 28, 2018
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 is America’s most active deal maker and one of the nation’s leading commercial real estate finance and investment sales firms. In 2017, Meridian closed over 3,000 debt transactions across more than 200 unique lenders and sold nearly $1 billion in commercial property. Since inception, the company has closed more than $300 billion in financing with the full complement of capital providers, encompassing local, regional and national banks, CMBS lenders, agency lenders, mortgage REITs, life insurance companies, credit unions and private equity funds. Meridian represents many of the world’s leading real estate investors and developers and the company’s expansive platform has specialized practices for a broad array of property types including office, retail, multifamily, hotel, mixed-use, industrial, healthcare, student housing and self-storage properties. Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Ohio, Florida and California. www.meridiancapital.com