Bama Bayou Wyndham Condotel

Orange Beach, Alabama

About the Project
The Offering: $14.5 million Construction Loan to Bama Bayou Wyndham, LP (the “Partnership”) to acquire the land and existing structures, develop and operate two condotels operated under the Wyndham franchise (“Hotel” or “Property”), consisting of a 104-guestroom Wyndham Trademark and a 24-guestroom Wyndham Registry hotel. The 104-guestroom Wyndham Trademark will be developed to a condo standard, yet will continue to be operated as a standard hotel. The 24-guestroom Wyndham Registry will, however, be immediately placed on the market as condominiums, and following the sale, will also be placed in a rental pool and managed by the Sponsor. The Hotel will be located in the 147-acre entertainment district in Orange Beach, AL. The Construction Loan will be secured by (i) a first lien deed of trust on the Property; (ii) all cash flows from the operation of the Hotel; and (iii) all condominium sales proceeds from the 24-guestroom Wyndham Registry. Although not a part of this loan request, the Property has the potential for an additional 104-guestrooms in subsequent phase. The timing and desire to construct the “Phase 2 Assets” will be solely dependent upon the future market conditions.

Our Involvement
Creation of Special Districts and securing the capital and codevelopment partners

Project Success
The client is presently involved in negotiations with various public, private and non-profit entities to advance the development. The project is currently in the planning stages, and the client has been successful at securing a fully executed development agreement to provide incentives and funding tools to make the project a reality.