CooperWynn Capital closed the $32 million in long-term, fixed-rate financing on behalf of Suburban Capital. The transaction simultaneously refinanced four existing WoodSpring Suites properties and funded the acquisition of a fifth hotel, expanding the sponsor’s Virginia extended-stay portfolio to 610 guestrooms across five markets. A national life insurance company provided the financing.
The financing was structured in two components: The refinancing and retirement of existing construction debt on Suburban Capital’s four-property Virginia portfolio and the acquisition of WoodSpring Suites Richmond North in Ashland, Va. The existing properties are located in Lynchburg, Roanoke, Yorktown and Richmond. CooperWynn structured and timed the process so both transactions closed concurrently with a single lender, eliminating the execution complexity and timing risk of separate acquisition and refinance closings.
All four existing hotels, built in 2022 or later, were performing at a going-in debt yield exceeding 15 percent at closing, reflecting strong operating performance and lender confidence in the portfolio. The newly acquired Ashland property opened in August 2023 and is located along the I-95 corridor approximately 15 miles north of downtown Richmond. All five hotels are managed by Hotel Management and Consulting.
“Suburban Capital had built a high-performing portfolio and identified an opportunity to add a fifth asset in an adjacent market,” Keaton Quigley, vice president of CooperWynn Capital, said in a statement. “By aligning the acquisition timeline with the refinancing process, we were able to deliver a single closing that accomplished both objectives under one capital structure. Executing a transaction like this requires lender confidence in both the sponsor’s operational track record and long-term strategy.”