COVINGTON, LA. — Red Oak Capital Holdings LLC has provided an $8.4 million loan for a hotel-to-multifamily conversion project in Covington. The borrower, an investment group represented by Nebo Capital, is using the financing to purchase the former WeStay Suites hotel at 140 Holiday Blvd. and reposition it into an 87-room apartment community. The 12-month bridge loan will fund the $6.9 million acquisition and $1.8 million in planned improvements for the conversion.
The five-story, 89,831-square-foot hotel was built on 2.9 acres in 2009 and features an outdoor pool, fitness center and community rooms.
The borrower has completed a similar hotel-to-multifamily adaptive reuse project in the Covington area, according to Red Oak Capital. The borrower plans to refinance the bridge loan upon completion of the renovation with permanent or agency debt.