Direct private lender completed the first-lien refinance in 19 calendar days, retiring maturing institutional debt and funding targeted property improvements
NEW YORK, July 15, 2026: Stratton Capital Group, a direct private commercial real estate lender, announced the closing of a $32.75 million senior secured bridge loan for a 152-key branded select-service hotel located in a Southeast U.S. growth market.
The financing retired the property’s maturing institutional loan and provided additional capital for closing costs, targeted room and common-area improvements, working capital, and continued operational stabilization. Stratton Capital Group funded the transaction 19 calendar days after execution of the term sheet.
The 30-month, interest-only loan is secured by a first-lien mortgage on the hotel and represents approximately 64% loan-to-value.
Financing A Sound Asset Through a Transitional Period
The hotel is owned and operated by an experienced hospitality group with a demonstrated track record across branded select-service properties.
Although the property had sound underlying collateral, experienced sponsorship, and a defined operating plan, the existing debt was approaching maturity before the sponsor had completed the remaining property improvements and operational stabilization required for conventional permanent financing.
The maturity date created a timing issue rather than a fundamental asset problem. The sponsor required a lender that could evaluate the hotel based on its current performance, market position, improvement plan, collateral value, and expected stabilized operations.
Stratton Capital Group structured the bridge loan to:
• Retire the existing institutional debt before maturity
• Cover transaction and closing costs
• Establish a controlled reserve for room and common-area upgrades
• Provide working capital during the remaining stabilization period
• Give the sponsor sufficient time to improve operating margins and RevPAR
• Preserve several potential exit strategies, including bank, debt fund, or CMBS refinancing and a potential property sale
“This was a fundamentally sound hotel with experienced sponsorship, but the maturity date arrived before the property had completed its operating and improvement plan,” said Lantz George, CEO of Stratton Capital Group. “The sponsor needed certainty around timing and a structure that recognized the asset’s current performance, collateral value, and credible path to permanent financing or sale. We focused on the facts, moved through diligence quickly, and closed within 19 calendar days of the signed term sheet.”
Direct Execution for a Time-Sensitive Closing
As a direct private lender using in-house private investor capital, Stratton Capital Group controlled the underwriting and closing process from initial review through funding.
The firm evaluated the sponsor’s hospitality operating history, the hotel’s brand affiliation and market position, current and projected cash flow, the proposed improvement scope, collateral coverage, and the feasibility of multiple exit strategies.
The resulting first-lien structure provided the sponsor with sufficient time to complete targeted improvements, continue the property’s operating recovery, and pursue permanent financing or a sale from a more stabilized position.
“Private bridge financing is most effective when the timing of an existing maturity does not align with the remaining business plan,” George added. “In this transaction, moderate leverage, experienced sponsorship, strong collateral, a controlled capital plan, and several viable exits supported a disciplined bridge structure.”
A Growing Need for Transitional CRE Financing
Commercial real estate owners are continuing to address loan maturities in a lending environment where permanent financing may require stronger in-place cash flow, lower leverage, additional reserves, or more time to complete a property-level business plan.
A bridge loan can provide an interim solution when an asset remains fundamentally sound but does not yet meet conventional permanent-lender requirements. The structure can be particularly relevant for owners facing a near-term maturity, an acquisition deadline, pending improvements, lease-up, operational stabilization, or an existing lender that cannot meet the required proceeds or timeline.
This transaction illustrates how a direct private lender can solve a timing and structure problem without disrupting a sponsor’s longer-term plan.
ABOUT STRATTON CAPITAL GROUP
Stratton Capital Group is a direct private commercial real estate lender providing senior bridge and transitional financing for acquisitions, refinances, value-add business plans, and time-sensitive transactions.
The firm uses in-house private investor capital and focuses on execution certainty, responsive underwriting, disciplined structures, and clear communication throughout the closing process. Stratton Capital Group generally considers commercial real estate loan requests from $3 million to $100 million across hospitality, multifamily, industrial, mixed-use, retail, senior housing, and select land or development scenarios.
Each transaction is evaluated individually based on the property, sponsorship, collateral, leverage, business plan, and exit strategy.
For additional information, visit https://www.stratton-capital-group.com/
SUBMIT A COMMERCIAL REAL ESTATE FINANCING REQUEST
Commercial real estate owners, sponsors, brokers, mortgage bankers, and capital advisors with live acquisition, refinance, maturity, or bridge loan scenarios may contact Stratton Capital Group at info@stratton-capital-group.com or submit a request through https://www.stratton-capital-group.com/online-loan-application.
MEDIA AND TRANSACTION INQUIRIES
Email: info@stratton-capital-group.com
Phone: (510) 214-6011
Website: https://www.stratton-capital-group.com/