SEFCU bulks up its commercial division [Times Union, Albany, N.Y.]

May 18--SARATOGA SPRINGS -- When the new owners of the historic Adelphi Hotel in Saratoga Springs sought financing for their plan to buy and refurbish the Victorian-era property, they didn't turn to a large bank.

They chose SEFCU. The Albany-based credit union provided a $7.26 million loan package to the group of sophisticated real estate investors that also built The Paddocks at Saratoga, a high-end apartment complex in Wilton.

The group -- Adelphi Hotel Partners LLC -- includes Toby Milde, managing director of Capital District Properties, and his father, Simon Milde, a real estate investment banker in Manhattan who does business around the world.

A portion of the SEFCU financing was used to purchase the hotel. But $4.1 million is for improvements to the property, according to loan documents on file at the Saratoga County Clerk's office.

SEFCU might not immediately be associated with significant commercial projects, but the Albany-based credit union has been rapidly expanding its commercial division, which was moved last year with its insurance unit into a new building named SEFCU Square in downtown Schenectady.

"We are thrilled to work with the Adelphi's owners," said Michael Castellana, SEFCU's CEO, on Thursday. "We're very excited about the project. They have the experience and resources to do something special with the property."

SEFCU made waves behind the scenes a year ago when it hired Thomas Amell to be its president of commercial services. At the time Amell was regional president for the eastern division of First Niagara Bank out of Buffalo, one of the area's biggest lenders.

Today, SEFCU has 20 commercial bankers in Schenectady, not including its insurance unit, and Amell is leading the charge for SEFCU, resulting in deals like the one with the Adelphi owners.

"That secret has gotten out," Castellana said.

SEFCU had $2.4 billion in assets as of the end of March, including $1.3 billion in loans.

Toby Milde could not immediately be reached for comment on what plans his group has for the Adelphi Hotel.

However the real estate agent involved in the $4.5 million sale, Miriam Scarborough of Prudential Blake Commercial, said last month that the new owners intend to maintain the 39-room hotel's unique character while making strategic investments.

[email protected] --518-454-5504 --@larryrulison

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