North Avenue Capital Closes $2.6 MM USDA Rural Development Loan to Home Hotel

North Avenue Capital

March 31st, 2020

North Avenue Capital Closes $2.6 MM USDA Rural Development Loan to Home Hotel

Ponte Vedra, Florida — March 31, 2020 — North Avenue Capital (NAC), one of the nation’s leading providers of USDA-backed commercial loans, announced the closing of a $2.6 million USDA Rural Development loan to the Sorensen family to purchase and run the Home Hotel in Lava Hot Springs, Idaho.

The Home Hotel was built in 1918 and still retains its historic 100-year-old faćade, while the inside boasts stylish and comfortable rooms that are an added bonus to the relaxing retreat of the Lava Hot Springs area. The hotel is also the only hotel in the area to offer hot mineral non-sulfuric water into its rooms for guests to use in their large soaking tubs, and it is located closest to the city’s hot mineral pools.

A majority of NAC’s loan will be used to purchase the property from the Pearhill family, with the rest being allocated to upgrade the roof and renovate the lobby. These additions will provide guests with an updated and enhanced version of the hotel while providing tourists a scenic getaway from the start of their stay in Lava Hot Springs.

The Sorensen family is no stranger when it comes to the management and maintenance of facilities such as their new project. With over 50 years of combined experience, this family is well-equipped with the proper tools to run and maintain a boutique hotel in a sought out industry.

“Times of economic uncertainty also create opportunity,” Riley Sorensen, owner of the Home Hotel, stated. “We’re excited that North Avenue caught our vision for this project and stood with us to see it through.”

With the operation still functioning under revised health and safety guidelines, the Sorensen family was impressed by all of the Home Hotel’s current staff and desires to retain all employees during the ownership transition and for the foreseeable future; and plan to increase staff to help manage the projected increase in hotel occupancy. The added benefits of keeping current employees, with the potential of adding more, will provide financial support and job security for individuals during this time of crisis.

According to Ben Chatraw, NAC’s Chief Executive, “even during good economic times, rural businesses struggle to access affordable capital.  NAC is proud to partner with the USDA and the Sorensen’s to breathe new life into this historic property, particularly during these unprecedented times.”

Learn More about the USDA B&I Program Today

About 777 Holdings, LLC

777 Holdings, LLC operates under the Bullet Energy brand and is a salt water disposal, rig work, and commercial transportation energy service company serving oil and gas exploration firms operating in southern Oklahoma and northern Texas. 

About North Avenue Capital, LLC

North Avenue Capital is a specialized commercial lender exclusively originating, underwriting, and funding USDA RD loans nationwide. Using its expertise, capital, and relationships, NAC is committed to building businesses, growing economies, and creating jobs in rural America. Learn more about North Avenue Capital and their Borrowers by visiting www.northavenue.com.

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