Scientific Capital

Financing Construction with Conventional

Loan in Alabama

Dual Marriott Springhill Suites and Townplace
Hoover, AL

Scientific Capital started its engagement with this project a few years ago but soon realized that many tasks required to be completed for the financing had not even started. In general, the best time to start the financing for a hotel construction project is when the architectural plans are complete and the franchise has approved the plans. Assuming the city takes up to six months to approve the plans and to issue the permits (we have seen city approval range from 60 days in some cities in the US to 3 years in some cities in California), this is the suitable amount of time needed to finance the project. With the architectural plans in place, the contractor can provide a more precise hard cost quote, the vendor can offer a detailed FF&E quote, and the developer can put together a comprehensive cost model which will be used by the appraiser for the valuation and the lender for the loan amount determination. In this project, the MEP (mechanical, electrical, and plumbing) plans are still in the works. The city will issue permits after these plans are complete. With the closing of this loan, the developer can start the site work while the city approves the plans. However, most lenders do require approval by the city, and some even require permits to be issued before closing the loan. This $22.3 million loan is fixed for 5 years with a 25-year amortization but interest only during the stabilization period and is at 75% of the total cost which comprises the following costs:
Hard cost
  • Land
  • FF&E
  • Site work / pre-construction
  • Hard construction cost 
Soft cost
  • Architecture and Engineering 
  • Legal fees/consulting
  • Permits/Utility tap
  • Signage
  • Landscaping
  • Technology systems
  • Franchise fee
  • Pre-opening
  • Other misc fees
Qualified fees:
  • Contingency
  • Interest expense
  • Bank fees
  • Developer fee
  • Scientific Capital fee
Rashmi and Niral Thakor visiting Ramin
at AAHOA 2016 in Nashville, TN

Our Other Projects With This Client

What differentiates us from the others is loyalty of our clients. Here is the other hotels that we financed for this client not to mention a number of referrals that we got from this client.

Learn More About Us

About us
Loans Closed