$8.3M Construction Loan for Brownfield-to-Hospitality Development
Introduction
Strategic hospitality development on a remediated Brownfield site. Cornovus Capital secured $8,300,000 in construction financing for an 85-key limited-service hotel developed on a previously contaminated site. The project involved extensive environmental remediation, complex infrastructure upgrades, and coordination with local, state, and federal regulators.
The borrower needed a capital structure that could withstand permitting delays, regulatory risk, and changing construction timelines. Cornovus Capital led a tailored capital markets process to deliver financing aligned with long-term performance goals.
Challenge
Environmental hurdles, regulatory complexity, and construction timing risk. The borrower acquired a site designated as a Brownfield, triggering remediation mandates, agency oversight, and phased development timelines. Specific challenges included:
- Compliance with environmental remediation under EPA and state mandates
- Multi-agency permitting involving zoning, land use, and utility coordination
- Inflation-driven construction pricing and labor shortages
- Financing pressure to fund pre-opening, FF&E, and operating reserves
- Need for capital certainty during phased remediation and site clearance
Solution
Flexible construction-to-perm financing with capital reserves and phased draws. Cornovus Capital structured a loan package to fund the entire development cycle, from remediation through stabilization. Key features included:
- 18-month construction term with interest-only payments, converting to 10-year perm loan on 25-year amortization
- Dedicated capital for environmental cleanup, soil testing, and regulatory milestones
- Phased draw structure aligned with site clearance and infrastructure benchmarks
- Working capital reserves to fund marketing, FF&E, and staff onboarding
- Optional refinancing or re-stabilization built into repayment structure
Results
Clean project execution and successful delivery of a branded hospitality asset. Cornovus Capital’s financing helped convert a contaminated site into a successful hotel project. Outcomes included:
- Environmental remediation completed in full EPA/state compliance
- Permitting completed on schedule with no development delays
- Infrastructure coordination funded through strategic capital draws
- Pre-opening completed with operational cash reserves
- Permanent loan structure matched to brand revenue expectations
About Cornovus Capital
With over 60 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability.
Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.
Why Partner with Cornovus Capital?
At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether you’re acquiring a business, buying out a partner, expanding operations, or combining real estate into a growth plan—we deliver capital strategies designed for certainty and efficiency.
What Sets Us Apart?
• Advisory expertise across business stages and sectors: We structure financing for acquisitions, expansions, partner buyouts, and practice ownership transitions.
• Innovative capital structuring: We integrate seller notes, working capital, CapEx, and goodwill financing into efficient, customized capital stacks.
• Lender alignment and competitive terms: We match each transaction with lenders who understand your industry—ensuring smooth approvals and favorable terms.
• End-to-end execution and advisory support: From deal modeling and loan packaging to lender communication and closing, we manage the entire process to ensure successful outcomes.
For business owners, professionals, and entrepreneurs seeking flexible SBA financing, Cornovus Capital delivers strategic insight, execution certainty, and long-term support.
Contact Cornovus Capital
At Cornovus Capital, we simplify the financing process with tailored solutions, competitive loan terms, and expert advice. Whether you’re acquiring, refinancing, or developing a property, we’re here to help you succeed.
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📞 513-653-4246
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