Avatar provides $4.35 million for midscale hotel

Portland, TX Avatar Financial Group LLC (“Avatar”), a leading Seattle-based national bridge lender specializing in commercial real estate, has provided a $4.35-million loan on an IHG-branded property. The loan proceeds were used toward the sponsor’s purchase of another hotel for its portfolio.

The sponsor, Nova Portland Hotels, LLC, is an established joint venture between Loudoun Hospitality Management (LHM), an Ashburn, VA-based real estate investment firm, and Octave Acquisitions, LLC, an Atlanta-based real estate fund manager. LHM, which will oversee operations, brings extensive experience in hotel acquisitions and value-add management. The sponsor plans to refinance the Avatar loan with a conventional lender upon stabilization of the collateral.

Situated at 281 Buddy Ganem Dr., the midscale Avid Hotel features 95 rooms across four stories and offers 110 parking spaces. Despite being one of the newest assets in its market, the limited-service hotel has underperformed relative to competitors, with occupancy and revenue metrics trailing the market average. To address these challenges, the borrower plans to implement targeted marketing strategies, enhance revenue management practices, and improve guest satisfaction scores. With these initiatives, the property is projected to exceed the performance of its competitive set, which comprises older, less efficient hotels in the area.

“This project reflects the value of investing in newer assets in markets with limited competition,” said T.R. Hazelrigg IV, president of Avatar. “With its upgraded, modern design, professional management, and proximity to key demand drivers like major employers and popular attractions, the asset stands out as a competitive option in a growing market. The borrower has a clear plan to optimize operations and capture market share, and we’re pleased to provide the financing to support this transformation.”

The Avid Hotel is located near multiple demand generators, including Kiewit Offshore Services, Valero Bill Greehey Oil Refinery, and attractions like North Beach, the Texas State Aquarium, and the USS Lexington.