ValueXpress arranged a $2,325,000 first mortgage loan secured by a mixed-use office/warehouse/showroom building that is 100% owner-occupied by a plumbing supply company. The building consists of 19,200 square feet and includes four floors plus a basement, situated on a 0.147± acre site. Each of the four floors contains 4,800 square feet with 14-foot ceilings. The property is located in the neighborhood of Sunset Park in Kings County, Brooklyn, New York. The transaction featured a 25-year term with an initial 5-year fixed-rate period. Loan payments are based on a 25-year amortization schedule.
“What was amazing about the location of this property is the appraiser surveyed 15 retail properties located in the subject property’s market and found virtually no vacancy,” said Michael Sneden, Executive Vice President of ValueXpress. “How’s that for a strong market?!
ValueXpress obtained a $6,950,000 first-mortgage loan commitment from its New York banking partner, Country Bank, in conjunction with an SBA 504 second mortgage for the acquisition of a seven-story, 210-room, limited service hotel constructed in June 2003; the property is located in northern New Jersey. Room mix is 157 standard guest rooms, 42 parlor suites, 2 hospitality suites and 9 Jacuzzi suites; the limited service hotel also includes a large breakfast room, country store, business center, one meeting room, fitness room, indoor pool and a 24-hour shuttle to the airport. The hotel was developed by a corporate owner.
The transaction was time sensitive as another bank working on the loan was unable to complete the transaction. Country Bank obtained the green light to work on the loan shortly thereafter and approved the loan in ten days.
“Country Bank is an entrepreneurial partner,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “The bank is family owned and the decisionmakers are right down the hall from my office. When they say they will get a deal done, they will. And very quickly.”
ValueXpress closed on a $485,000 first-mortgage loan commitment with its affiliated bank, Country Bank. The loan, an SBA 7(a) loan, was approved based on the SBA’s approval of a 90% guarantee under the Jobs Act program. The transaction was approved on a floating-rate basis with a 6% start-rate and a cap of 9.75%, the rate the borrower was paying on its prior loan. This way, as long as the rate stays below 9.75%, the borrower will save relative to the old loan.
The borrower, a dentist, owns a 1.5-story medical office building that was originally constructed in 1951 (gut renovated/converted in 2007). The facility, located in Bergen County, NJ, contains 3,100± square feet of gross building area that is in very good overall condition.
Once the transaction was committed, Country Bank obtained an environmental report that indicted that an underground heating oil tank may have been abandoned on-site, and after additional research, the probable location of the tank was found. A contractor was hired to excavate and remove the tank, but on excavation, it was discovered that the tank had leaked and contaminated the soil.
“We then began assisting the borrower in remediation, collecting bids for soil removal and helping the borrower apply for reimbursement from a State of New Jersey remediation program,“ said Michael D. Sneden, Executive Vice President at ValueXpress. “In addition, we petitioned the SBA to extend its commit to preserve a 90% guarantee and fee waiver until December 31, 2011 and the SBA concurred.”
After Jim Brett, senior underwriter at ValueXpress, said, “Closing this transaction was like pulling teeth.” he was promptly thrown out of our office for making a bad joke.
ValueXpress has obtained a $4.125-million CMBS conduit loan commitment for the refinance of a Candlewood Suites constructed in 2008 in Augusta, GA. The property is a 3-story, 84-room extended-stay interior-corridor hotel constructed by the sponsors to Candlewood Suites brand standards. The property recorded the highest occupancy in 2011 of any Candlewood Suite property in the franchise system. Room mix is 18 king studio suites and 66 double queen studio suites. Each suite features a fully equipped kitchen, large workspace and recliner. Kitchens include full-sized refrigerator/freezer, cook-top, microwave, dishwasher, cooking utensils, dishes and sink. The property features the Candlewood Cupboard, where guests can purchase food, beverages and toiletries. Additional amenities include the Gazebo Grill, Guest Laundry, Lending Library, Candlewood Gym and outdoor pool.
The property is located 2 miles from Augusta National Golf Course (home of “The Masters”) and in proximity to several colleges, medical centers and the Augusta Museum of History.
The loan provides for a 10-year term with a 20-year amortization schedule and is non-recourse. Financing was provided by an active CMBS conduit lender that has an ongoing relationship with ValueXpress to originate additional CMBS conduit loans.
ValueXpress has arranged an SBA 504 loan transaction to refinance a conventional owner-occupied real estate loan held by its affiliate, Country Bank. The existing $990,000 loan carries an interest rate in excess of 8% and will be refinanced with a new first mortgage from Country Bank in the mid-6% area for approximately $550,000; the SBA will provide a second mortgage through its 504 program for approximately $440,000 at a rate of approximately 5.10%. The blended interest rate is expected to be less than 5.75%.
The property is a 5,000-square-foot single-story retail building located in the Hempstead area of Long Island, NY. The owner operates a hair salon, including coloring, styling, hair extensions and bridal services. In addition, ancillary services, including facials, massages, waxing and nail treatments, are offered.
“We are always trying to help our clients obtain lower-cost financing from available programs,” said Jim Brett, senior underwriter at ValueXpress. “The SBA 504 program is extremely attractive rate- and term-wise and we convinced Country Bank that its reduced exposure on the transaction -- by lowering its loan-to-value from about 80% to 50% -- was an excellent trade-off to reducing the bank’s rate on the first mortgage position from over 8% to the mid-6% area,” said Brett.
The borrower is expected to save over $600,000 in interest charges over the life of the new loan.
ValueXpress closed on a $5-million first-mortgage loan commitment from its New York banking partner, Country Bank, for the purchase of a Comfort Inn limited service hotel in Brooklyn, NY. The property securing the loan is a newly constructed 4-story, 81-room limited-service hotel that opened in August 2011. The site lies in close proximity to the Brooklyn Passenger Ship Cruise Terminal and immediately adjacent to the Battery Tunnel leading into Manhattan. The property is 5 minutes from downtown Manhattan, within 2-5 miles of all major bridges and tunnels between Manhattan and New Jersey and has quick access to all major area airports. The hotel features 46 king rooms and 35 double-bed rooms. The hotel will have on-site guest parking, an amenity not available at competing hotels in the area. The property is subject to a ground lease that has a term of 48 years.
The loan was 90% guaranteed by the SBA under its 7(a) loan program. The loan was approved in 2010 while the property was under construction under President Obama’s Jobs Act, which waived the SBA fees on the transaction and provided a higher guarantee limit versus the 75% guarantee that is available today.
ValueXpress closed a $6.5-million CMBS conduit first-mortgage loan on a 19-building, 2-story apartment complex constructed in 1972 and renovated in 2010 located in Jacksonville, FL. The transaction was a cash-out refinance of an existing loan that has been utilized to rehabilitate the property. The loan was structured with a 10-year fixed-rate term amortized based on a 25-year schedule.
The property is located within the heart of the city of Jacksonville, Duval County, FL, approximately a half mile from I-95, which allows for access to downtown Jacksonville, as well as Georgia and the southern parts of Florida. There is a substantial amount of residential development in the immediate area.
“The transaction was challenging in that the property recently completed a substantial rehabilitation and neither the income nor the expenses were stabilized,” commented Jim Brett, the ValueXpress underwriter on the transaction. “Many conduit lenders passed on the deal because of this issue; however, we have an excellent ongoing relationship with an investment bank that stepped up and hit the proceeds target for the borrower,” said Brett.
The transaction closed in 32 days. “The sponsor is a long-time client of ValueXpress and it was imperative that the transaction close without a hitch to maintain this very important relationship,” said Michael D. Sneden, Executive Vice President of ValueXpress. “I am thankful our investment banking partner performed so well on yet-another transaction.”
ValueXpress closed an $875,000 first-mortgage loan on a 2-story, 40-room exterior corridor limited-service hotel built in 1987 on a 1.4-acre site in Canton, Madison County, MS. The property is franchised as an Americas Best Value Inn budget branded hotel. The property is located adjacent to I-55 at the intersection of Highway 22. The area is developed primarily with restaurants and other hospitality properties. The property’s business is heavily influenced by a 2-million-square-foot Nissan automobile manufacturing plant that was completed in 2003 and is located two miles south of the property. Additional demand arises from a myriad of suppliers to the plant in the area. The property features 23 double rooms and 17 king rooms.
“This transaction was very challenging as few lenders are interested in small, budget branded, exterior corridor hotels over 10 years old,” commented Jay Bhakta, senior loan originator at the ValueXpress Jackson, MS, office. “However, this property is owned by a good client of mine who has never been late on a payment in his life, and with a nationwide 7(a) lending relationship that likes smaller, good performing properties despite age, flag and exterior corridor configuration, I was able to get this loan closed.”
“Just before the closing, I found a title defect regarding the transfer of excess land to my borrower,” said Jay. “I put on my legal cap and got the lawyers together to get it fixed. All in a day’s work, I guess.”
The sponsors, Pakaj Patel (from left) and his son, Nirav Patel were so pleased with Jay and ValueXpress that they requested we post a photo of their property.
ValueXpress closed a $2.85-million first-mortgage loan with a Texas banking partner, Herring Bank, for a 3-story, 62-room interior-corridor limited-service hotel built in 1999 on a 1.5-acre site in Killeen, Bell County, TX. The property is franchised as a Hampton Inn. Located in the southwest section of Killeen, the property is approximately two miles southeast of Fort Hood. Demand for the hotel arises primarily from commercial/business travelers visiting the city of Killeen. According to the guarantors, the source of business demand is diverse and includes Sallie Mae, AT&T and local banking institutions. ValueXpress processed an SBA 7(a) loan guarantee on behalf of Herring Bank, as the bank was not familiar with SBA 7(a) processing requirements.
“The transaction represents the second time ValueXpress has financed this property,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “We originally provided a 10-year, fixed-rate, non-recourse loan for the owner ten years ago. The loan recently matured and was extended while the subject loan was processed. As fixed-rate, non-recourse hotel loans require a minimum balance of $5 million, we obtained an SBA 7(a) loan for now, until the CMBS conduit loan minimum comes down, at which time we will likely refinance the loan into a CMBS conduit program.”
ValueXpress closed on a $5.15-million first-mortgage loan commitment from its New York banking partner, Country Bank, for the purchase of an independent limited service hotel in the Long Island City section of Queens, NY. The property is a 3-story, interior corridor, 78-room, limited-service, non-franchised hotel constructed in 2001. Located 5 miles from LaGuardia Airport and 13 miles from John F. Kennedy International Airport, the hotel is in the heart of New York’s Long Island City. The property is minutes from Manhattan, across the Queensboro Bridge, providing access to Midtown Manhattan’s many attractions (including Grand Central, Bryant Park and Times Square). Citicorp Field and other New York City (NYC) destinations can be accessed by the NYC subway system located a few short blocks from the hotel.
“This deal follows a transaction that we closed a couple of months ago for this sponsor,” said Michael D. Sneden, Executive Vice President at ValueXpress. “The sponsor was impressed with the speed, efficiency and knowledge ValueXpress staff brought to the transaction. The prior deal had a critical time element and the sponsor had great financial exposure if the deal did not close. But it did, and on schedule,” said Sneden.
The property was purchased out of foreclosure and is underperforming. Country Bank was comfortable with the loan because the sponsor has an excellent track record for turning around underperforming hospitality properties by implementing better marketing plans, expense control and investment in capital improvements. The sponsor is currently implementing a $250,000 capital improvement plan.
ValueXpress closed on a $5-million CMBS conduit loan for the refinance of a Candlewood Suites constructed in 2009 in Houston, TX. The property is a 3-story, 81-room extended-stay interior-corridor hotel constructed by the sponsors to Candlewood Suites brand standards in 2009; its grand opening was in March 2009. Room mix is 50 king studio suites, 23 double queen studio suites and 8 king one-bedroom suites. Each suite features a fully equipped kitchen, large workspace and recliner. Kitchens include full size refrigerator/freezer, cook-top, microwave, dishwasher, cooking utensils, dishes and sink. The property features the Candlewood Cupboard, where guests can purchase food, beverages and toiletries. Additional amenities include the Gazebo Grill, Guest Laundry, Lending Library, Candlewood Gym and outdoor pool.
The loan refinanced a recourse loan held by a community bank and allowed the borrower to recoup cash invested in the construction of the property. The loan provides for a 7-year term with a 25-year amortization schedule and is non-recourse. Financing was provided by an active CMBS conduit lender that has an ongoing relationship with ValueXpress to originate additional CMBS conduit loans.
ValueXpress obtained a $1.5-million first-mortgage loan commitment from a Midwest commercial bank for the refinance of a self-storage facility in Butler County, a northern Cincinnati, OH suburb. The commitment is subject to receipt of an SBA 7(a) guarantee.
Built in 1997, the 24,715-square-foot, one-story facility contains 164 storage units encompassing 20,890 square feet of gross building area and a free-standing office building with 3,825 square feet of gross building area. The 8 buildings are constructed of concrete block and steel walls, concrete slab foundation and metal roofing. Each unit has an exterior metal roll-up door.
“This is our first SBA 7(a) loan for a self-storage project,” commented Gary Unkel, a senior loan originator for ValueXpress who handled the transaction. “SBA loan guidelines were changed in 2010 to allow self-storage/mini storage or mini warehouse businesses as an eligible business type. The property must be owner-operated to qualify,” said Unkel.
In May 2010, ValueXpress obtained a $485,000 first-mortgage loan commitment with its affiliated bank, Country Bank, based on the SBA’s approval of a 90% guarantee under the Jobs Act program, just prior to the expiration of the stimulus program on May 31, 2010. The borrower, a dentist, owns a 1.5-story medical office building that was originally constructed in 1951 (gut renovated/converted in 2007). The facility contains 3,100± square feet of gross building area that is in very good overall condition, located in Bergen County, NJ.
Once the transaction was committed, Country Bank obtained an environmental report that indicted that an underground heating oil tank may have been abandoned on-site, and after additional research, the probable location of the tank was found. A contractor was hired to excavate and remove the tank, but on excavation, it was discovered that the tank had leaked and contaminated the soil.
“We then began assisting the borrower in remediation, collecting bids for soil removal and helping the borrower apply for reimbursement from a State of New Jersey remediation program,“ said Michael D. Sneden, Executive Vice President at ValueXpress. “In addition, we petitioned the SBA to extend its commit to preserve a 90% guarantee and fee waiver until December 31, 2011 and the SBA concurred.”
In July 2011, the borrower finally received a “No Further Action” letter signaling the remediation is complete. The loan is now scheduled to close in September under the terms of Country Bank and SBA commitments from May 2010.
ValueXpress obtained a $4.9-million CMBS conduit loan secured by a residential apartment complex located in Lake Charles, LA. The two-story garden apartment complex, built in 1978, consists of 112 rental apartments in 14 separate buildings. Significant renovation of the property was conducted during 2005-2006. The renovation included new stucco for the majority of the exterior walls, leasing office renovation, exterior paint, interior lights, carpet, appliances, new double-pane windows, HVAC components replacement and painting of cabinets. Property amenities include a swimming pool with sunning deck, playground, basketball court and picnic area. Other features include on-site laundry facilities, washer/dryer hook-ups, private patios/balconies, wood burning fireplaces and walk-in closets. The property was 97% occupied at closing. The 75% LTV 10-year fixed-rate loan amortizes on a 25-year schedule.
ValueXpress obtained a $5.15-million first-mortgage loan commitment from its New York banking partner, Country Bank, for the purchase of an independent limited service hotel in the Long Island City section of Queens, NY.
The property is a 3-story, interior corridor, 78-room, limited service, non-franchised hotel constructed in 2001. The hotel is located 5 miles from LaGuardia Airport and 13 miles from John F. Kennedy International Airport in the heart of New York’s Long Island City. The property is minutes from Manhattan, across the Queensboro Bridge, providing access to Midtown Manhattan’s many attractions (including Grand Central, Bryant Park and Times Square). Citicorp Field and other New York City (NYC) destinations can be accessed by the NYC subway system located a few short blocks from the hotel.
“This deal follows a transaction that we closed about one month ago for this sponsor,” said Michael D. Sneden, Executive Vice President at ValueXpress. “The sponsor was impressed with the speed, efficiency and knowledge ValueXpress staff brought to the transaction. The prior deal had a critical time element and the sponsor had great financial exposure if the deal did not close. But it did, and on schedule,” said Sneden.
The new deal is similar. To secure the purchase, the sponsor has remitted a large contract deposit and the transaction is time critical. ValueXpress expects the transaction to close in 30 days, start to finish, meeting the needs of the client.
ValueXpress secured a $7.4-million CMBS conduit loan secured by a residential garden apartment complex located along I-45 between Houston and Dallas, Texas. The two-story garden apartment complex, built in 1984, consists of 176 rental apartments in 22 separate buildings. At closing, the property was 98% occupied. The 75% LTV 10-year fixed-rate loan amortizes on a 25-year schedule.
“This property is owned by a long-time CMBS conduit borrower client of ValueXpress,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “We are now seeing more multifamily deals as multifamily markets and property cash flows improve, and former CMBS conduit borrowers return to CMBS conduit product.”
ValueXpress obtained an $875,000 first-mortgage loan commitment on a 2-story, 40-room exterior corridor limited-service hotel built in 1987 on a 1.4-acre site in Canton, Madison County, MS. The property is franchised as an Americas Best Value Inn budget branded hotel. The property is located adjacent to I-55 at the intersection of Highway 22. The area is developed primarily with restaurants and other hospitality properties. The property’s business is heavily influenced by a 2-million-square-foot Nissan automobile manufacturing plant that was completed in 2003 and is located two miles south of the property. Additional demand arises from a myriad of suppliers to the plant in the area. The property features 23 double rooms and 17 king rooms.
“This transaction was very challenging as few lenders are interested in small, budget brand, exterior corridor hotels over 10 years old,” commented Jay Bhakta, senior loan originator at the ValueXpress Jackson, MS office. “However, this property is owned by a good client of mine who has never been late on a payment in his life, and with a nationwide 7(a) lending relationship that likes smaller, good performing properties despite age, flag and exterior corridor configuration, I was able to secure a commitment with a closing scheduled for the end of July.”
ValueXpress obtained a $2.85-million first-mortgage loan commitment with a Texas banking partner, Herring Bank, for a 3-story, 62-room interior corridor limited service hotel built in 1999 on a 1.5-acre site in Killeen, Bell County, TX. The property is franchised as a Hampton Inn hotel under the terms of a 20-year franchise that matures in July 2017. Located in the southwest section of the City of Killeen, the property is approximately two miles southeast of Fort Hood. Demand for the hotel arises primarily from commercial/business travelers visiting the city of Killeen. According to the guarantors, the source of business demand is diverse and includes Sallie Mae, AT&T and local banking institutions. The commitment is subject to an SBA 7(a) loan guarantee that will be processed by ValueXpress on behalf of Herring Bank.
“The transaction represents the second time ValueXpress has financed this property,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “We originally provided a 10-year, fixed-rate, non-recourse loan for the owner 10 years ago. The loan recently matured and was extended while the subject loan was processed. As fixed-rate, non-recourse hotels loans require a minimum balance of $5 million, we obtained an SBA 7(a) loan for now, until the CMBS conduit loan minimum comes down, at which time we will likely refiannce the loan into a CMBS conduit program.”
ValueXpress obtained an $11-million first-mortgage loan commitment from a CMBS conduit lender to refinance a 162-room interior corridor limited service hotel constructed in 2002. The hotel is located in immediate proximity to Liberty International Airport in Newark, New Jersey. The property was sold to the current owner in November 2008. The existing lender is reducing its hospitality exposure and offered the borrower an opportunity to pay the loan off at a discount.
Room demand is nearly exclusively derived from the property’s proximity to Liberty International Airport. The subject property has maintained stable occupancy through the economic crisis and associated recession, maintaining it market-leading penetration.
“The transaction was a challenge in that the borrower needed 80% LTV to make the deal work,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “Most conduit lenders are at 65%-70% on CMBS hospitality loans, which would not have generated enough loan proceeds to make the numbers work. However, we have a pre-CMBS crash relationship with a CMBS team that provides higher leverage loans, splitting the loan internally into a senior piece for securitization and keeping the subordinate piece in portfolio,” said Sneden. “It was just what the doctor ordered for this deal.”
ValueXpress obtained a $1.25-million first-mortgage loan that was utilized to refinance existing debt secured by a 6,800-square-foot net leased retail building leased to Advance Auto Parts. The improvements are located on a 1-acre site and were constructed in 2006. The improvements are in excellent physical and functional condition. The property is in Broward County in the Miami-Ft. Lauderdale-Miami Beach MS. The loan transaction was structured as a 10-year term based on a 30-year amortization schedule. Loan-to-value was 75% and the property provides 1.25x net cash flow DSCR on actual income and expenses.
ValueXpress obtained a $3.5-million first-mortgage loan commitment with its New York banking partner, Country Bank, from the SBA for an independent hotel located in Brooklyn, New York. The property securing the loan is a newly constructed seven-story, 72-room limited service hotel that opened in March 2011. The site, in the Bushwick section of Brooklyn, is in close proximity to Woodhull Hospital Center, a major local employer. The area has been undergoing a gentrification process with residents moving to the area for its convenience to Manhattan. The hotel features 54 queen rooms and 18 double bed rooms. The property is subject to a ground lease that has a term of 70 years.
“The transaction was a challenge as the deal was structured as a refinance in combination with a purchase of an existing partner’s ownership interest. In addition, the purchaser and seller of the ownership interest were relatives,” said Michael D. Sneden, Executive Vice President of ValueXpress. “Under SBA guidelines, if there is a transfer of ownership interest among relatives as part of the SBA loan, substantial justification of the purchase price must be provided. We provided the financial analysis to support the price of the transfer and received SBA approval,” noted Sneden.
ValueXpress obtained a $5.5-million first-mortgage loan that was utilized to refinance existing debt secured by a 20,000-square-foot neighborhood shopping center located in the Atlanta MSA. The property is currently 100% occupied by nine tenants. The property was constructed in 2004 and is in excellent condition. The loan transaction was structured as a 10-year term based on a 30-year amortization schedule. Loan-to-value was 75% and the property provides 1.25x net cash flow DSCR on actual income and expenses.
ValueXpress closed on a $2,085,000 first-mortgage loan commitment secured by a 68-unit garden-style apartment community located in the southeastern portion of Alabama. The property was built in 1978 and renovated in 2005-2006. Renovations, which totaled $270,000, included upgrades to the pool, clubhouse, exterior and interior of the residential buildings. The improvements consist of 16 two-story buildings (plus a leasing office) situated on an 18.55-acre lot. The unit mix is 12 1-bedroom/1-bath units (578 square feet), 36 two-bedroom/1-bath units (925 square feet) and 20 two-bedroom/1.5-bath units (1,024 square feet). The buildings feature brick veneer, vinyl or wood clapboard siding with pitched built-up roofs, some of which are mansard. Unit amenities include central air-conditioning and dishwashers. Project amenities include a pool and a clubhouse/leasing office. At closing, the property was 97% occupied.
The property is owned by a local multi-family investor who purchased the property in 2005 for $1,950,000 including transaction costs. The loan refinanced a 5-year recourse loan held by a regional bank and allowed the borrower to recoup cash invested to complete the renovation. The loan provides for a 10-year term with a 30-year amortization schedule and is non-recourse.
ValueXpress obtained a $2,500,000 first-mortgage loan commitment from a CMBS conduit lender to refinance a construction loan that was utilized to construct a CVS drugstore in Tulsa, OK. The property is a newly-built prototype building with 13,225 square feet. The lease provides for a 25-year term, with a fixed net rent for 20 years and a rent bump for the remaining 5 years of the primary term. The lease provides for 6 five-year options thereafter. The loan has a 10-year term based on a 30-year amortization.
The property used to be occupied by an independent drug store and a fast food restaurant, both of which were demolished for the new construction. The location is the third in the Tulsa area as CVS continues its expansion throughout the state of Oklahoma.
“This transaction is an example that small loans of the right quality can get financed through CMBS,” said Michael D. Sneden, Executive Vice President at ValueXpress. “Credit-tenant drug stores like CVS and Walgreen’s are in high demand for CMBS loans.”
Guaranty Bank and Trust, a ValueXpress banking partner, closed on a loan for the construction of a 9,960-square-foot retail building located at 4207 Clay Street in Vicksburg, MS for a ValueXpress client. The loan amount will be $945,000 when fully funded. Total project costs are an estimated $1,545,000. The property will contain 7 tenant spaces, 5 occupied by companies owned and operated by the applicant. The 5 spaces will contain 4 businesses: a Subway restaurant, a liquor store/warehouse, an ice cream store and a hair salon. Owner occupancy will be 72%.
The short-term construction loan will be replaced by a 25-year permanent loan with an SBA 7(a) loan guaranty. ValueXpress has completed the loan package on behalf of Guaranty Bank and has submitted the loan to the SBA for 7(a) approval. The project is expected to be completed in six months and the loan converted to permanent status at that time.
ValueXpress closed a $2,705,000 first mortgage loan in conjunction with a $1,665,000 SBA 504 second mortgage loan utilized to acquire a 72-room interior-corridor property located in northeastern Columbus, Ohio. The property is in proximity to the Honda manufacturing plant located in Marysville and the Scotts Miracle-Gro Company. The hotel was constructed in 2002 and is in excellent condition. The property draws primary demand from business and leisure travelers along State Route 33. The 3-story property contains 32,000 square feet of space and has parking for 80 vehicles.
ValueXpress obtained a $945,000 first-mortgage loan commitment from its Mississippi banking partner, Guaranty Bank, for the construction of an 9,960-square-foot retail building located at 4207 Clay Street in Vicksburg, MS. The proposed loan amount is $945,000 and total project costs are an estimated $1,545,000. The property will contain 7 tenant spaces, 5 occupied by companies owned and operated by the applicant. The 5 spaces will contain 4 businesses, a Subway restaurant, a liquor store/warehouse, an ice cream store and a hair salon. Owner occupancy will be 72%. The commitment is subject to receipt of an SBA 7(a) loan guaranty. ValueXpress has completed the loan package on behalf of Guaranty Bank and has submitted the loan to the SBA for approval. The project is expected to be completed in 6 months.
“This a good client of mine who wanted to own the real estate in which they operate their businesses instead of leasing," commented Jay Bhakta, a senior loan originator at the ValuXpress Jackson, MS office. “It is tough to find construction loans right now, but with our excellent relationship with Guaranty Bank and the SBA, we were able to get this done for the client.”
ValueXpress obtained a $4-million first-mortgage loan commitment from its New York banking partner, Country Bank, for an independent limited service hotel in Brooklyn, NY. The property is a 4-story and basement 62-room limited service non-franchised hotel operating under the dba of Imperial Hotel. The property was newly constructed in 2007. The building is "L" shaped with frontage on both East New York Avenue and Alabama Avenue. The building contains 6 rooms with double beds, 6 Jacuzzi rooms and 50 king/queen/single rooms. In addition, the property offers a lobby, check-in area and exercise room. The property is subject to a land lease with a 45-year term that expires in 2050, with one 25-year option to renew. As a result, the security for the loan will be a first leasehold mortgage.
“Country Bank stepped up for this client by increasing its current $2.875 million loan to $4 million, allowing the borrower to recoup equity for another hospitality project,” said Michael D. Sneden, Executive Vice President of ValueXpress. “In this environment where banks are reducing exposure to hospitality, Country Bank is increasing its exposure for good properties, which is terrific news for borrowers.”
ValueXpress obtained a $4.5-million first-mortgage loan commitment with its New York banking partner, Country Bank, from the SBA for a Quality Inn located in Brooklyn, New York. The property securing the loan is a four-story, 81-room limited service hotel scheduled to open in February 2011. The site lies in close proximity to Brooklyn Passenger Ship Cruise Terminal and immediately adjacent to the Battery Tunnel leading to Manhattan. The property is 5 minutes from downtown Manhattan, within 2-5 miles of all major bridges and tunnels between Manhattan and New Jersey and has quick access to all the major airports. The hotel features 46 king rooms and 35 double bed rooms. The hotel will have on-site guest parking, an amenity not available at competing hotels in the area. The property is subject to a ground lease that has a term of 48 years.
ValueXpress worked pretty much non-stop 12-14 hours a day on this transaction beginning on December 8, when Jim Brett, senior underwriter at ValueXpress, took a car service from the Manhattan-based ValueXpress office to meet a borrower in central New Jersey and pick up 18 inches of paperwork on the potential deal. At the same time, Michael Sneden, Executive Vice President of ValueXpress, visited the property in the Red Hook section of Brooklyn, NY. The deal was submitted on December 13, 2010 to meet the SBA cutoff for a 90% guaranty and fee waiver.
ValueXpress closed on a $5-million first-mortgage loan commitment with its Mississippi banking partner, Guaranty Bank and Trust Company, on a 90% guaranteed SBA 7(a) loan for a beverage distribution company located in Batesville, MS. The property securing the loan is a one-story 59,500-square-foot industrial warehouse/distribution building and a 5,600-square-foot maintenance building, both constructed in 2000 on a 22.65-acre site in Batesville, MS. The main facility is a 3-section building consisting of a 9,500-square-foot office complex with a lobby, gift shop, administrative and executive offices, training and conference room, and storage rooms. The center section is a 20,000-square-foot delivery truck staging area with a ceiling height of 27 feet and overhead glycol piping utilized to keep truck cargo cold. The warehouse is 30,000 square feet and climate controlled with a ceiling height of 22/27 feet. The facility was constructed at a cost of over $6.5 million in 2000. The property is in excellent condition and is located within a half-mile of I-55, enabling trucks to quickly travel to distribution points within the company's market.
“The borrower gave me a great big bear-hug at closing,” commented Jay Bhakta, a senior loan originator at the ValuXpress Jackson, MS office. “After the loan was rejected by the USDA Business and Industry (B&I) guaranteed loan program in the fall, the borrower thought the deal was dead. But we brought it back from the ashes!”
“The SBA applauds the efforts of Guaranty Bank and ValueXpress in processing and closing this SBA loan on behalf of the borrower,” said Rhonda Fisher, Supervisory Lender Relations Specialist for the Mississippi District Office of the SBA. “This $5-million loan was the first loan in the State of Mississippi approved and closed at the new SBA limits,” commented Fisher.
ValueXpress closed on a $1,950,000 first-mortgage loan commitment secured by a 57-room limited-service hotel operating under a Country Inn & Suites franchise. The loan was supported by a 90% SBA loan guarantee. The property, built in 1998, is located in Lumberton, NC at Exit 20 of I-95. Lumberton is situated on I-95, 20 miles north of the South Carolina border. The property, adjacent to the exit and easily visible from the highway, is the first hotel encountered at the exit.
The loan was sponsored by Lumbee Guaranty Bank. The borrower arranged for Lumbee and ValueXpress to work together on the refinancing, recognizing that ValueXpress had substantial experience in the origination and packaging of SBA 7(a) loans, while Lumbee could continue to build its long-standing client relationship by sponsoring the loan. Based on the positive experience, Lumbee and ValueXpress are committed to working together on additional SBA 7(a) loans in North and South Carolina.
“ValueXpress and Lumbee did a spectacular job for me,” said Harish Amin, owner of the property. “The existing lender offered me an incentive if I closed this loan by the middle of November and they got it done!” said Amin. “I am grateful to Lumbee and ValueXpress as they saved me a significant amount of money.”
ValueXpress obtained an $800,000 commitment from Country Bank, New York, N.Y., for a 10-year self-amortizing leasehold improvement loan subject to receipt of a SBA 7(a) loan guarantee. The loan will be used to finance leasehold improvements to renovate, expand and reposition a health club/fitness center located in an office park in Yonkers, N.Y. The new space will combine two existing business, Two Jacks, Inc. DBA Gym Cats, which is a gymnastics school operated by John Ryan since 1995, and a previously operated health and racquet club under the name of Court Sports 2. Court Sports closed in February of this year. In May, Chiara LLC entered into 12-year lease for 20,216 square feet of space and reopened the health club/fitness center under the name of Equalize Fitness. The space is currently 60% renovated and should be completed in December; it will feature a newly designed area for Gym Cats, a Parisi speed school and a general fitness area.
The borrower is a long-time client of Country Bank and ValueXpress, which provided a fixed-rate CMBS conduit loan for an affiliate of the borrower in 2003. Country Bank has provided portfolio loans for the client for the past 10 years. Country Bank typically does not provide leasehold financing; however, with a 90% SBA 7(a) guarantee and outside real estate as additional collateral, Country Bank was able to accommodate the client.
ValueXpress obtained a $4.5-million first-mortgage loan commitment with its Mississippi banking partner, Guaranty Bank and Trust Company, from the SBA for a beverage distribution company located in Batesville, MS. The property securing the loan is a 1-story 59,500-square-foot industrial warehouse/distribution building constructed in 2000 on a 22.65-acre site in Batesville, MS and a 5,600-square-foot maintenance building. The main facility is a 3-section building consisting of a 9,500-square-foot office complex with a lobby, gift shop, administrative and executive offices, training and conference room, and storage rooms. The center section is a 20,000-square-foot delivery truck staging area with a ceiling height of 27 feet and overhead glycol piping utilized to keep truck cargo cold. The warehouse is 30,000 square feet and climate controlled with a ceiling height of 22/27 feet. The facility was constructed at a cost of over $6.5 million in 2000. The property is in excellent condition and is located within a half-mile of I-55, enabling trucks to quickly travel to distribution points within the company's market.
“The project is an example of lender perseverance,” commented Jay Bhakta, a senior loan originator with ValuXpress who is located in its Jackson, MS office. “We originally underwrote and submitted the loan as a USDA Business and Industry (B&I) guaranteed loan application, but after significant passage of time, the USDA ruled that the cash price paid for the distribution rights (in excess of $1 million) for a major beverage product was an “intangible” asset and did not qualify for inclusion as an asset for the 10% tangible net worth calculation for the USDA B&I program,” said Bhakta. The client was devastated by the ruling as it did not meet the program guidelines once the distribution rights were removed from the calculation. “I was watching the progress of the potential increase for the 7(a) program in the meantime,” noted Bhakta. “Once it was approved, I went back to the client and orchestrated a re-underwriting and switch to the SBA 7(a) program and submitted the loan in the first week applications at the higher level were accepted. Now the client is thrilled, as the USDA fee would have been 2%, and the SBA fee is zero.”
ValueXpress obtained a $1,950,000 first-mortgage loan commitment from the SBA for a 57-room limited-service hotel operating under a Country Inn & Suites franchise. The 90% SBA loan guarantee of $1,755,000 is the first loan approval for ValueXpress based on the new SBA guarantee limits. Prior to October 18, 2010, the maximum guarantee would have been $1,666,666; however, this loan was approved on October 29 under the new rules. The property, built in 1998, is located in Lumberton, NC at Exit 20 of I-95. Lumberton is situated on I-95, 20 miles north of the South Carolina border. The property, adjacent to the exit and easily visible from the highway, is the first hotel encountered at the exit.
The loan was sponsored by Lumbee Guaranty Bank. The borrower arranged for Lumbee and ValueXpress to work together on the refinancing, recognizing that ValueXpress had substantial experience in the origination and packaging of SBA 7(a) loans, while Lumbee could continue to build its long-standing client relationship by sponsoring the loan. Based on the positive experience, Lumbee and ValueXpress are committed to working together on additional SBA 7(a) loans in North and South Carolina.
ValueXpress closed on a $3.6 million USDA loan note guarantee (80% of the loan amount) to support a $4.5 million refinancing of a 58-room limited-service hotel located in Ithaca, NY. The loan refinanced a first mortgage held by Ares Capital and a second mortgage held by the bankrupt estate of Business Loan Center/Ciena Capital that in combination was utilized to construct a Country Inn & Suites hotel. The property is a two-story, 58-room (53 suites and 5 rooms) limited-service hotel (plus one apartment) completed in 2008 and situated on a 2.74± acre site in Ithaca, Tompkins County, NY operated under a Country Inn & Suites franchise. Garuda Hotels acquired the hotel site in June 2005. The borrower has been a ValueXpress client since 1999.
The transaction, closed by Country Bank, a $450-million community bank based in New York City, was handled by Michael D, Sneden, Executive Vice President at ValueXpress, and Tim Moffett, Vice President, Government Lending Programs for Country Bank. The loan was closed by Michael Kennedy of Lawrence and Walsh, a leading real estate law firm in the region that specializes in closing government-guaranteed loans.
ValueXpress obtained a $1,438,335 first-mortgage loan commitment in conjunction with a $1,555,665 SBA 504 second-mortgage loan to be utilized to acquire a single-story industrial building located in Farmingdale, NY. The property is utilized as a showroom, warehouse and distribution center for a granite slab importer/wholesaler. In 2009-2010, the borrower renovated the showroom at a cost of $325,000. The company, which has captured the upper end of the market by selling only "first choice" grade granite, has supplied counters, floors, wall hangings and other unique granite pieces to wealthy eastern Long Island clients for many years.
Country Bank, a New York City-based community bank, provided the first mortgage commitment. The Long Island Development Corporation sponsored the SBA 504 portion of the loan. The borrower had seven years of experience in the distribution of unique marble pieces, a talent derived from the owner’s former experience in the fashion industry. The purchase provided an opportunity to expand the business to prepare for future growth.
ValueXpress closed a $225,000, 10-year self-amortizing leasehold improvement loan program to construct leasehold improvements for a Subway restaurant located in Rolling Fork, Mississippi. The loan was underwritten and submitted to the SBA on behalf of Guaranty Bank, the Mississippi banking partner of ValueXpress.
“The borrower was extremely pleased with the loan process and has requested that we finance an additional 10 locations,” said Jay Bhakta, who manages the ValueXpress loan office in Mississippi. “Since each location requires $225,000, this would have exceeded the SBA limit of $2 million; however, with the new Small Business bill expected to increase the SBA limit to $5 million, we will be able to accommodate the client, which makes me very pleased,” said Bhakta.
ValueXpress obtained an $866,000 construction loan commitment from ValueXpress’ Mississippi banking partner, Guaranty Bank to be used to construct an 8,000-square-foot retail building that has been pre-leased to three tenants. The transaction was originated by Jay Bhakta in Valuexpress’ Mississippi office. Bhakta faced numerous hurdles in getting the project committed. First, the borrowers approached him after significant time had passed on the land purchase contract, as they had been turned down at most of the local banks in the area. “The borrowers are extremely creditworthy,” explained Bhakta, “but the local banks just do not want to make construction loans. The borrowers were going to lose a significant deposit if I did not obtain a commitment for them quickly.” Luckily, ValueXpress and Bhakta have a significant relationship with Guaranty Bank, which quickly committed to the deal. But then another issue arose, as the property had a drainage basin that impinged on the building’s footprint. Bhakta brought in a construction company that he worked with on prior projects; the company solved the problem and will likely be awarded the construction contract. “Borrowers think I am just a lender, but I wear many hats to get these projects done for my clients,” said Bhakta.
ValueXpress obtained a $225,000, 10-year self-amortizing leasehold improvement loan commitment from the SBA 7(a) loan program to construct leasehold improvements for a Subway restaurant located in Rolling Fork, Mississippi. The loan was underwritten and submitted to the SBA on behalf of ValueXpress’s Mississippi banking partner, Guaranty Bank. The SBA approved the loan seven days after submission. The borrower, Parsotam Rolling Fork, Inc., was very pleased with the turnaround on the loan, which will allow the restaurant to open on schedule at the end of September.
“We are extremely pleased with our relationship with ValueXpress and their expertise in navigating the SBA 7(a), 504 and Business and Industry loan programs for the benefit of Guaranty Bank and its customers,” commented Jerry Gillespie, chief credit officer for Guaranty Bank. “We intend to increase our lending volume using these programs because ValueXpress can provide the back-office manpower we need to process loan applications in a timely manner to meet our clients needs.”
ValueXpress obtained a $1,332,500 first mortgage loan that was utilized to refinance a CMBS conduit loan that was set to mature in September. The Mississippi borrower is a long-time client of ValueXpress as the firm has provided ten CMBS conduit loans over a 10-year period.
“We explained to the client that they should start the process early, which the client agreed to do,“ commented Jay Bhakta, a senior loan originator who represented ValueXpress in the transaction. “As it turns out, the loan can only be closed on the first of the month without incurring double interest payable to both the old CMBS lender and the new lender,” explained Bhakta. “The transaction was further complicated by the subject loan being cross-collateralized with a smaller property that did not qualify for Fannie Mae financing. We coordinated a local bank loan on the smaller property to be closed simultaneously on the first day of the month with the subject loan,” commented Bhakta. The new loan carried a rate below 5.5% and provided a 10-year term based on a 30-year amortization schedule.
The property is a 64-unit class “B” garden-style apartment complex located in Brookhaven, Mississippi. The property is 98% occupied and has been owned and managed by the borrower for over 10 years.
“Until the CMBS conduit market returns to normal, we will continue to provide viable options through Fannie Mae, Freddie Mac and HUD 223(f) to provide attractive financing alternatives to our existing and new clients,” noted Michael D. Sneden, Executive Vice President at ValueXpress
ValueXpress obtained a $3,600,000 USDA loan guarantee (80% of the loan amount) to support a $4,500,000 refinancing of a 58-room limited-service hotel located in Ithaca, New York. The loan will refinance a first mortgage held by Ares Capital, and a second mortgage held by the bankrupt estate of Business Loan Center/Ciena Capital that in combination was utilized to construct a Country Inn & Suites hotel. The property is a two-story, 58-room (53 suites and 5 rooms) limited-service hotel (plus one apartment) completed in 2008 and situated on a 2.74± acre site in Ithaca, Tompkins County, NY operated under a Country Inn & Suites franchise. Garuda Hotels acquired the hotel site in June 2005. The property is in excellent condition and derives significant room demand from its proximity to Ithaca College, which is located less than a half mile from the hotel. In addition, supplemental demand is derived from its proximity to Cornell University and leisure demand is found in the spring, summer and fall related to attractions in and around Ithaca. The loan was processed by Karen McDonnell, Business Programs Specialist with the New York USDA. “Karen was terrific,” said Michael D. Sneden, Executive Vice President at ValueXpress. “She was fast, efficient and delivered exactly what we applied for, and she recommended some very good ideas on how to structure the loan. We are actively seeking more USDA loans in New York to have more opportunities to work with Karen.”
ValueXpress closed a $1,750,000 first-mortgage loan in conjunction with a $1,400,000 SBA 504 second-mortgage loan utilized to acquire a single-story industrial building. The property, located on eastern Long Island, NY, is utilized as an arcade. The Long Island Development Corporation sponsored the SBA 504 portion of the loan. The borrower had ten years’ experience in the distribution of arcade machines, including pinball machines, video games, pool tables, interactive games and related entertainment games. The purchase provided an opportunity to expand the business to the retail sector.
ValueXpress closed a $600,000 first-mortgage loan in conjunction with a $240,000 SBA 504 second-mortgage loan utilized to acquire and renovate a 3,000-square-foot former single-story residential property into office space. The property is located on the East Coast of Florida and a property appraisal company is expanding into the space. “The borrower owns the adjacent office building, and we arranged a simultaneous cash-out refinance to provide the equity to purchase the subject property,” commented Michael D. Sneden, Executive Vice President of ValueXpress. The transaction featured a waiver of the 0.5% SBA fee and other CDC fees.
ValueXpress obtained a $500,000 first-mortgage loan commitment from the SBA on May 28, 2010, just prior to the expiration of the stimulus program on May 31, 2010. “This was a classic case of the extra mile ValueXpress goes for its clients,” explained Michael D. Sneden, Executive Vice President of ValueXpress. “I was contracted by the borrower, a dentist in northern New Jersey, in the first week of May. The borrower indicated that he had a very high-rate, 30-year fixed-rate loan secured by his dental office. He wanted to refinance the loan, but did not want a balloon or a floating rate. I grabbed my computer with my SBA forms and files and headed over to his office on Wednesday May 12. (Yes, a day off for my client, but he doesn’t play golf anyway.) We worked for 6 hours to complete the entire file and wore out his copy machine. I underwrote the deal, obtained a commitment from Country Bank to fund the deal and submitted to the SBA on May 21st, since Country Bank is not a PLP lender in the 7(a) program. We received the SBA guarantee on May 28th and the borrower was very impressed with the effort. The loan was structured as a floating rate with a cap and floor, with the cap set at the same rate as the current fixed rate. So long as the floating rate is below the cap, the borrower wins. We expect the borrower to save over $100,000 over the life of the new loan.”
ValueXpress obtained a $1,720,000 first-mortgage loan that was utilized to refinance existing debt of $1,100,000 and $345,000 in equipment loans on a mixed-use property. The cash-out proceeds of $275,000 partially recovered the borrower’s substantial investment in property improvements. The property is a two-story, mixed-use retail/residential building located in the Park Slope section of Brooklyn, NY. The property, which was once two separate buildings, was constructed in the 1920s and consists of an owner-occupied retail unit on the ground floor (operated as an Italian restaurant) and four residential units above. The conventional portfolio loan was provided by Country Bank. The transaction was structured as a five-year, fixed-rate loan with the option to renew after the five-year period for another five years based on an index over the NY FHLB rate.
ValueXpress obtained a $3,150,000 first mortgage loan that was utilized to refinance a CMBS conduit loan set to mature in September. The Mississippi borrower is a long-time client of ValueXpress as the firm has provided ten CMBS conduit loans over a 10-year period. “We explained to the client that they should start the process early, which the client agreed to do,“ said Jay Bhakta, a senior loan originator who represented ValueXpress in the transaction. “As it turns out, the loan can only be closed on the first of the month without incurring double interest payable to both the old CMBS lender and the new lender,” explained Bhakta. “This required an unanticipated additional 30 days to coordinate, but since we had extra time prior to maturity, it did not affect the transaction. In addition, the new loan carried a rate below 6%, while the maturing loan was well over 8%, providing immediate savings by closing early. The property is a 120-unit class “B” garden-style apartment complex located in suburban Jackson, Mississippi. The property is 92% occupied and has been owned and managed by the borrower for over 10 years. “Until the CMBS conduit market returns to normal, we will continue to provide viable options through Fannie Mae, Freddie Mac and HUD 223(f) to provide attractive financing alternatives to our existing and new clients,” noted Michael Sneden.
ValueXpress obtained a $1,650,000 first-mortgage loan to be utilized for the acquisition of a limited-service hotel located in southern Texas. The loan was co-originated with a ValueXpress partner bank located in Texas utilizing the SBA 7(a) loan guaranty program. The transaction was challenging since the property is a less-desirable exterior-corridor hotel that was losing its mid-tier franchise. As the market in which the property is located is well represented by most of the major franchises, only a budget-level franchise was available. This presented an underwriting challenge to determine the anticipated level of ADR and occupancy under the new franchise. ValueXpress prepared a complete market study at no charge to the client to determine projected revenue, operating expenses, and estimated property value. The work enabled the property buyer to negotiate a discount to the contract price based on outcome of the market study. “This is an example of the extra mile we go to help our clients,” commented Jay Bhakta, a senior loan originator who represented ValueXpress in the transaction.
ValueXpress closed a $2,500,000 first mortgage loan consisting of $2 million to pay off of an existing $7.4-million loan at a discount and a $500,000-renovation holdback. The loan is secured by 8 KFC restaurants. The loan resulted in forgiveness of over $6 million in debt for the borrower. Although the forgiveness of debt creates a large tax liability for the guarantor, President Obama’s stimulus packages provided a provision to allow the taxes on forgiveness of debt to be paid over an extended period. The 20-year loan was structured with a renovation holdback that will be utilized to upgrade the restaurants to the most recent KFC brand standards. The restaurants range from 1,600 square feet to 3,800 square feet and are located in Ohio and western Pennsylvania.
ValueXpress closed a $2,125,000 first mortgage loan in conjunction with a $1,335,000 SBA 504 second mortgage loan utilized to acquire a 70-room interior-corridor property located in central Minnesota. Constructed in 1995, the hotel is in excellent condition. The property draws primary demand from business and leisure travelers in central Minnesota. “The transaction was a challenge in that the hotel is located in a relatively rural area, with a population of under 10,000 people and not proximate to an interstate highway,” said Jim Brett, who underwrote the deal for ValueXpress. “We completed an intensive market demand report in order to support future room demand for the hotel to get the deal done.”
ValueXpress arranged a $1,720,000 first mortgage loan secured by a two-story mixed-use retail/residential building located in the Park Slope section of Brooklyn, New York. The loan was closed by its New York-based banking partner, Country Bank, for its portfolio. The property consists of an owner-operated Italian restaurant, located on the ground floor and operating in a 3,600-square-foot retail space, and four residential units consisting of 3,100 square feet. The 10-year loan provides for two five-year fixed-rate periods. Loan payments are based on a 25-year amortization schedule. “We were pleased to deliver this high-quality, well-located transaction to Country Bank,” Michael Sneden, Executive Vice President of ValueXpress said. “The owner-occupant business generates over two times DSCR, and we anticipate this loan to be a high performer in the Bank’s portfolio."
ValueXpress closed a $960,000 first mortgage loan secured by a Super 8 limited service hotel located in metropolitan Dayton, Ohio. The 25-year fixed-rate loan carries an interest rate in the 6% area and is full recourse. The loan was closed through the SBA 7(a) program. The property is a 60-room interior-corridor property serving a suburban community in Dayton, Ohio that was purchased by an experienced hotel owner-operator. The property is located in proximity to retail and commercial areas that provide room demand. The transaction was challenging as the seller maintained very poor books and records. Thankfully, the ValueXpress originator on the transaction, Gary Unkel, has an accounting background and was able to re-create the property’s financial statements using Peachtree accounting software. “We were pleased to be able to provide this financing given the lack of detailed financial statements,” Unkel said. “This transaction is another example of what ValueXpress does for its clients.”
ValueXpress provided due diligence services related to the negotiation and purchase of nine performing owner-occupied loans at a discount to face amount on behalf of Country Bank, a N.Y. commercial bank with $500 million in assets. The loans, with a principal balance in excess of $6 million, are located in the New York metropolitan area and are secured by general-purpose real estate buildings in which the owner of the real estate operates a business on the property. The net income from the business provides at least 1.25x debt-service coverage. The seller was a Florida institution that inherited the loans from a failed financial institution. “We are going to work with the borrowers to refinance the loans to allow Country Bank to make a capital gain on the purchase discount, which will immediately flow to the bank’s profit and capital,” said Michael D. Sneden, Executive Vice President at ValueXpress, who worked on the transaction with Associate Jim Brett. “We are aggressively seeking more discounted performing loan opportunities on behalf of our banking clients to help them take advantage of the profit potential provided from the demise of failed financial institutions.”
ValueXpress closed a $2,550,000 first mortgage loan secured by an Econolodge limited service hotel located in upstate New York. The 5-year fixed-rate loan carries an interest rate in the mid-6% area and is full recourse. The loan was closed through the owner-occupied loan program offered by ValueXpress. The loan does not have an SBA component. The property is a 72-room interior-corridor property serving a college community. The refinancing allowed the borrower to refinance the loan held by an out-of-territory commercial bank that did not want to extend the loan. The loan included working capital that was utilized to pay for some cost increases on another property owned by the sponsor. The sponsor is a long-time client of ValueXpress, as this transaction was the third loan provided by ValueXpress since 1999. “We were pleased to be able to provide this financing given the declining performance in the hotel sector and general aversion to hotel loans, particularly without any SBA support,” said Jim Brett, who underwrote the loan for ValueXpress.
ValueXpress obtained a $20,500,000 Commitment from HUD to insure a loan secured by Mansion House Apartments, a 28-story mixed-use apartment complex located on 4th Street in downtown St. Louis, MO. The property contains 416 apartment units, 70,000 square feet of office space and a 558-car parking garage. The property was constructed in 1966. The commitment was obtained for a long-standing ValueXpress client. ValueXpress originally arranged a $12.4-million CMBS conduit loan for the property in 1993 at an interest rate of 8.4% and subsequently arranged a CMBS conduit loan refinance in 1998 for $17.7 million. The 35-year fixed-rate loan is anticipated to close with a interest rate under 5.5%. “The HUD 223(f) loan program provided over $2 million more proceeds than any other competing loan refinance offer,” notes Louis Tallarini, a principal with ValueXpress.
ValueXpress closed a $2,940,000 first mortgage loan in conjunction with a $1,805,000 SBA 504 second mortgage loan utilized to acquire a 77-room interior-corridor property located on Interstate 90 in northeastern Ohio. The property is 2 miles from Lake Erie. The hotel was construction in 1999 and is in excellent condition. The property draws primary demand from business and leisure travelers along I-90. “The transaction was a challenge in that one of the guarantors had no SBA eligibility remaining as the individual had already borrowed funds from the SBA up to the $2-million limit,” Jim Brett, who underwrote the deal for ValueXpress, said. “We worked with all the principals of the borrower and the SBA to craft a solution to create eligibility,” Brett said.
ValueXpress closed a $1,495,000 first mortgage loan secured by a Days Inn limited service hotel located in Alabama. The 30-year fixed-rate loan carries an interest rate in the low 7% area and is full recourse. The loan was closed through the owner-occupied loan program offered by ValueXpress. The loan does not have an SBA component. The property is a 53-room exterior-corridor property serving a smaller community. The refinancing allowed the borrower to release a vacant land parcel from the loan security for future development of a restaurant facility. In addition, the loan allowed for the recapture of recently completed capital improvements to the property. “We were pleased to be able to provide this financing in a difficult lending environment,” said Jim Brett, who underwrote the loan for ValueXpress, “particularly without any SBA support.”
ValueXpress closed a $1,750,000 first mortgage loan and a $1,400,000 SBA 504 second mortgage loan secured by two industrial properties located in Brooklyn, New York. Gary Unkel, who originated the loan on behalf of a long-time client, commented, “The company needed additional warehouse and office space based on its rapidly expanding business and the SBA program was perfect, providing overall 90% financing for the $3,500,000 purchase. The low down-payment allowed the business owner to use more working capital to expand the business.” The company deals in the sale of previously used clothing, footwear and toys. These items are purchased by the pound, and items in good condition are resold in vintage clothing stores in the New York metro area, while the balance is exported, primarily to Guatemala. The blended interest rate on the loan approximated 6%.
ValueXpress provided a $2,200,000 loan secured by a 37-unit garden apartment complex located in Pascagoula, Mississippi. The property was constructed in 1978 with the first floor and portions of the second floor gut renovated in 2007 after the building suffered extensive damage as a result of Hurricane Katrina. The two-story complex contains six buildings and was 97% occupied at closing. The purpose of the loan was to refinance seller-provided funding that enabled the borrower to close on the purchase of the property in December 2007 to capture income tax benefits related the Hurricane. The property seller is a long-time client of ValueXpress. The 80% LTV, 10-year fixed-rate loan amortizes based on a 30-year schedule.
ValueXpress Closes SBA 7(a) Loan Secured by Dental Office
ValueXpress Arranges Rate Reduction for Hair Salon in Long Island, NY
ValueXpress Closes $5-Million SBA 7(a) Loan Secured by an 81-Room Comfort Inn in Brooklyn, NY
ValueXpress Closes $875,000 SBA 7(a) Loan Secured by Americas Best Value Inn
ValueXpress Closes $2.85-Million SBA Loan for a Hampton Inn Limited Service Hotel in Killeen, TX
ValueXpress Closes $5-Million CMBS Conduit Loan for the Refinance of an 81-Room Candlewood Suites
ValueXpress Revives SBA 7(a) Loan Secured by Dental Office
ValueXpress Obtains $4.9-Million CMBS Conduit Loan for a 112-Unit Apartment Complex in Lousiana
ValueXpress Obtains $7.4-Million CMBS Conduit Loan for a 176-Unit Apartment Complex in Texas
ValueXpress Obtains $875,000 Loan Commitment for an Americas Best Value Inn located in Canton, MS
ValueXpress Closes $2,085,000 Multi-family Loan
ValueXpress Obtains a $2,500,000 Commitment to Refinance a CVS Drugstore
$945,000 Loan Closes for the Construction of a Multi-Tenant Retail Building
ValueXpress Provides SBA 504 Loan for the Acquisition of a Holiday Inn Express Limited Service Hotel
ValueXpress Obtains a $945,000 Commitment for the Construction of a Multi-Tenant Retail Building
ValueXpress Provides SBA 504 Loan for the Acquisition of an Office Building in Florida
ValueXpress Obtains $500,000 SBA 7(a) Loan Commitment Prior to Expiration of Stimulus Funds
ValueXpress Obtains $1.72-Million Conventional Loan for a Mixed-Use Property Located in Brooklyn, NY
ValueXpress Obtains $3.15-Million Fannie Mae DUS Loan to Refinance a Maturing CMBS Conduit Loan
ValueXpress Provides SBA 504 Loan for the Acquisition of a Holiday Inn Express Limited Service Hotel
ValueXpress Closes Loan Secured by Mixed-Use Property in Brooklyn, NY
ValueXpress Closes an SBA 7(a) Loan Secured by a Super 8 Hotel
ValueXpress Closes on the Purchase of a Portfolio of Nine Owner-Occupied Loans
ValueXpress Obtains a $2,550,000 Loan to Refinance a Limited Service Hotel in Upstate NY
ValueXpress Obtains $20,500,000 Commitment Under HUD 223(f) Multifamily Program
ValueXpress Provides SBA 504 Loan for the Acquisition of a Holiday Inn Express Limited Service Hotel
ValueXpress Provides Loan to Refinance a Days Inn Limited Service Hotel
ValueXpress Provides SBA 504 Loan for Brooklyn-Based Clothing Exporter
ValueXpress provides $2,200,000 Fannie Mae Small Balance Loan