Red Oak Provides $8.43M Bridge Loan for WeStay Suites

Red Oak Capital Holdings provided an $8.43-million bridge loan for the acquisition and conversion of WeStay Suites, a vacant 100-key hotel property in Covington, Louisiana, into an 87-unit multifamily community. The loan is 12 months and is structured at a 71.37% loan-to-stabilized value.

The financing supports a $6.9-million acquisition plus more than $1.80 million in planned capital improvements. The 89,831-square-foot asset built in 2009 sits on 2.9 acres at 140 Holiday Boulevard and includes amenities such as an outdoor pool, fitness center, and community rooms.

Under the sponsor’s plan, the property will be renovated into studio, one-bedroom, and two-bedroom apartments, with updates to unit interiors, common areas, the lobby, and exterior spaces, and then refinanced with permanent or agency debt after lease-up.