A Unique Alternative to Traditional Bank Financing

The Alfond Inn at Rollins College achieved a 100% occupancy rate since it opened in 2013. Due to the ongoing success of the hotel, the school realized an expansion was needed and secured a substantial private donation for the project but still fell short of its total cost. Expecting to use financing from their traditional bank, Rollins was disappointed with the limitations of a 5- to 7-year term that would lock in a rate only after construction was complete. A long-time relationship with First American opened the door to a conversation about what we could do differently.

– Ed Kania, VP for Business and Finance and Treasurer, Rollins College

Based on the strength of Rollins’ credit profile, First American was able to offer a 25-year term loan that locked the rate prior to construction. In a rising rate environment, this is expected to save the college millions of dollars over the life of the loan. During the construction phase alone, rates rose significantly, and that rate lock saved Rollins hundreds of thousands of dollars in interest expense.

From an operational standpoint, First American offered a seamless integration into the hotel’s existing processes, submitting and funding invoices within a day. This allowed cash flow to be easily managed, keeping the project on schedule and vendor relationships intact.