Chelsea Groton Bank October 2016
Business Matters Chelsea Groton understands big business concerns, small business needs... and where the two intersect.

Lending a Chance to Walk Back in Time at Spicer Mansion

Situation

Spicer MansionBuilt in 1853, the Spicer Mansion was purchased by Elihu Spicer, a renowned sea captain. The Mansion was kept in the Spicer family for over 70 years. Throughout the Great Depression and World II era, the home was sold numerous times, and was eventually parceled out into eight rental apartments. By the 1970s, the Mansion was completely rundown and faced being condemned. Ownership of the Mansion changed several more times before 2013, when it was purchased by the Gates family, who had a vision for turning it back into the enchanting place it once was.

There was much work to be done to salvaging the historic home. The entire exterior, wood flooring throughout, ornately designed plaster ceilings and walls, and floor-to-ceiling windows, were among the features that needed significant repairs.

Funding Plan

Spicer MansionInitially, Chelsea Groton Bank was approached in 2013 to finance the cost of purchasing the property and renovating the eight apartments that had been established a few decades earlier, through a commercial construction to permanent mortgage loan. The loan would cover buying the property, construction costs, transaction fees, and a contingency budget. In 2014, additional financial support was requested to cover costs for an updated sprinkler system and individual apartment HVAC systems. While construction continued, the Gates family continued to ponder the future of the Spicer Mansion. After much thought and discussion, they decided to convert the apartment building into a boutique hotel instead.

With this new direction, the funding plan was again modified in late 2015. The increased value of the new commercial construction to permanent mortgage would be used to refinance the existing mortgage on the property. Remaining monies would be used to complete renovations, purchase furniture, and cover additional startup costs not included in the construction budget. The construction portion of the loan had a term of up to nine months, with the permanent portion having a term of up to 20 years.

"Financing projects like Spicer Mansion, where you're trying to ensure all renovations maintain the historical integrity of the structure and design of the original building, can be a challenge," explained Joe DeMayo, VP, Commercial Loan Officer at Chelsea Groton Bank. "Often, as work begins, obstacles are uncovered that need to be dealt with. At the same time, hidden jewels can be found that make a property even more special than you previously imagined. We dealt with both scenarios throughout this renovation project, and modified the loan requests as needed. We couldn't be more pleased with the outcome."

Spicer MansionFollowing conversations with the Ocean House Management group, the Spicer Mansion is now the third property that is overseen by the highly successful property management group. In May 2016, the Spicer Mansion officially opened its doors. Since that time, it has wowed its guests with historic charm, luxurious amenities, incredible meals, and thoughtful touches that recently earned it being named to Relais & Chateaux's premiere list of boutique hotels around the world. As a sister property of the Ocean House in Watch Hill, RI, and the Weekapaug Inn in Westerly, RI, guests of each of the three properties are available to the lavish amenities at the other properties. A BMW 750i is available for complimentary, chauffeured transportation for guests to enjoy the beach access, restaurant options and spa available at the Ocean House, or the pool at the Weekapaug Inn. Guests of the properties are also welcome to the underground speak-easy (opening soon) and intimate dining options at the Spicer Mansion.

Each of the eight rooms at The Spicer Mansion combines historic charm and modern amenities. The rooms are each named for Spicer's ships, and all boast king size beds with Duxiana mattresses and Matouk linens, as well as Molton Brown bath amenities. The rooms also feature Spicer's obituary, prints of Spicer's boats, and a collection of books appropriate for the era.

Private parties and business events can be accommodated indoors or outdoors at the Spicer Mansion. Chef Jennifer Backman changes the elegant restaurant 's six-course menu nightly, and ensures it always reflects the freshest ingredients from local vendors. More casual fare for breakfast and lunch is also available daily.

Chelsea Groton Bank is proud to be the lending partner for The Spicer Mansion. The Spicer Mansion has graciously offered a 20% discount to Chelsea Groton Bank's newsletter readership, to expire at the end of November. Simply mention your affiliation with the Bank when calling to make arrangements. Certain restrictions may apply. To learn more about the Bank's lending capabilities, click here.

8
Victorian-style
guest rooms


6-course

seasonal tasting
menu that
changes nightly


40-plus

paintings on display
 and available
for purchase


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