Nigam Bhavsar formed Dattam Hospitality, LLC for the purpose of owning and operating a family-owned motel located at 3202 West 26th Street in Erie, PA. SEDA-COG Local Development Corporation assisted Dattam Hospitality, LLC with a $281,700 SBA 504 loan and a $60,000 SEDA-COG TEAM loan for the acquisition of land, building, and FF&E of the Glass House Inn. The motel is a 30-room exterior door property with an outdoor pool. The current owners were ready to retire after owning the property for 31 years. Nigam and his family moved from Connecticut to Pennsylvania to embark on this new endeavor.

The SEDA-COG TEAM loan was used toward the FF&E acquisition, while the SBA 504 loan was utilized for real estate acquisition. Mr. Bhavsar realized the benefits that SEDA-COG had to offer and partnered with Northwest Bank for the project.

The SBA 504 loan program offered a 20-year fixed rate low interest loan. The SEDA-COG TEAM loan also had a low fixed rate and was available for the partial equity injection into the project. The additional equity injection came from borrower cash.

John Reichard, SEDA-COG Senior Relationship Manager, worked closely with Mr. Bhavsar to bring this financing package to fruition with the assistance of Paul Kruszewski, Business Banker at Northwest Bank, Erie, PA.

The motel has had several updates in the past couple of years including new carpeting, new mattresses, upgrading to 32-inch TVs in each room, and free Wi-fi. The Glass House Inn also has a well-maintained outdoor pool.

The hotel expects to create 2 full-time jobs as a result of the project.

When asking Nigam about his experience with SEDA-COG he said, “Everyone at SEDA-COG was very responsive and professional when answering all of my questions. John Reichard was very knowledgeable with the SBA 504 program and was able to walk me through the details of the program and all of the finance staff was very helpful.”

For more information or to reserve a room, visit www.glasshouseinn.com.